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 the I .T. Act. Read below

Is Commuted Value of Pension Tax Free?

Whether the amount received as commutation of pension is taxable or not , Sardindu Basu, KolkataYes, the commuted value of pension is tax free...

Is Govt. contribution to the Employee by Employer under New Pension Scheme is Taxable?

The New Pension Scheme (NPS) has become operational since 1st January, 2004 and is mandatory for all new recruits to the Central Government Services from 1st January, 2004. Since then it has been opened to employees of State Governments, Private Sector and Self Employed (both organized and unorganized).P.VENKATA SIVA RAO, Banglore asks "Is Govt. contribution to the Employee by Employer under New Pension Scheme is Taxable?"

Can bank deduct tax on pension disbursed?

It has been clarified by CBDT vide circular No. 771 dt. 3/11/98 that in the case of pensioners receiving pension through nationalised banks, provisions of TDS are applicable in the same manner as they apply to the salary income

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

Are retirement benefits subject to TDS ?

Retirement benefits are taxable under the head salaries as 'profits in lieu of salaries' under section 17(3) of the Income Tax Act. Therefore, retirements benefits attract tax at source (TDS) prescribed in section 192 and other relevant sections.However some of the retirement benefits are exempt from taxation u/s 10 either fully or partly. So, no TDS is required on that portion of retirement benefits.The details of these exemption are being given below.

CBDT enhances exemption to Gratuity upto Rs 10 lakh !

CBDT has notified that employees  who  retire,  or become incapacitated before retirement, or expire, or whose services are terminated, on or after the 24th May...

Why Is Company Deducting Tax Even Though Salary Payment Is Below Exemption Limit?

TDS under sec 194 J @ 10% is deducted from the salary even though it is below the taxable slab (135000 for women). would...

Can you claim relief u/s 89 as well as exemption of Rs 5 Lakh...

Under the voluntary retirement scheme, the retiree employee receives lump-sum amount which is tax exempt up to Rs 5 lakhs as per section 10(10C) of the I.T. Act. The lump-sum amount is in respect of his balance period of service. Such amount is in the nature of advance salary

Are employers under statutory obligation to collect evidence of expenditure on LTC or conveyance...

Leave travel concession or conveyance allowance are part of salary and exemption u/s 10(5) of the I t Act is also allowed  to employee....
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