Relief u/s 89(1) for arrear salary simplified with Excel Tool !Download it.

Relief u/s 89(1) for arrear salary simplified with Excel Tool !Download it.
Central and State govt employees pay were revised in recent past on account of Sixth Pay Commission . So all govt. staff received lots of arrear payments for which now they are going to file return of Income . Naturally , one of the central concern among them is whether any  relief  from high tax on account arrear payments they received during FY 2009-10  are available. Yes, they can claim relief from tax on arrears received as per section u/s 89(1)  of

Choose date for fixation of pay under 6th pay commission !

Media reported today (6th Jul2010 ) that according to an office-memorandum issued by the Centre on Monday (5th July 2010 ) central govt. employees  have been allowed time till December to fix the base date for taking the new pay scale, from a date that is more beneficial to them. Earlier, they did not have this option as the government had fixed January 1, 2006 as the cut-off date for implementing the new pay award. The government, according to

Whether gratuity received on resignation or termination eligible for exemption

As per Board's letter F. No. 194/6/73-IT(A 1) Dated 19.06.73 exemption in respect of gratuity is permissible even in cases of termination of employment due to resignation. The taxable portion of gratuity will qualify for relief u/s 89(1). The gratuity payment is a certainty in every case today. However the exemption u/s 10(10) of the income Tax Act provides exemption as under : Any death-cum-retirement gratuity to central and state govt. employees, defence employees and employees in local authority

Five Tax Budget Proposal Affecting You Seriously!

Five Tax Budget Proposal Affecting You  Seriously!
Tax Slabs Expanded New tax labs are as under Upto 1,60,000  Exempt Rs 1,60,001 to Rs 5,00,000       10 % Ra 500001 to Rs 8,00,000        20 % Over Rs 8,00,000                          30% Therefore , majority of tax payers will get some kind of relief from tax. Deduction u/s 80D  on Central Government Health Scheme Till now , deduction was being allowed on medical insurance u/s 80D . Now , it is proposed that contribution to CGHS by central govt employees will