ILLUSTRATION TO RE-ASSESS THE INCOME TAX OF THIS YEAR (FIN YEAR 2009-10) BY SUBMITTING FORM 10-E
As per Rule 21A of Income Tax Rules 1962, we can submit Form 10E as we have received pay commission arrears pertaining to the years 2005-06, 2006-07, 2007-08 and 2008-2009. (January 2006 to August 2008). An example is given below which explains the eligibility for getting relief.
IT PAYABLE IF FORM 10-E IS NOT SUBMITTED (TABLE A)
| Sl No | Details | Amount |
|---|---|---|
| 1. | Income chargeable under "Salaries" (including 60% of 6th Pay Commission arrears of Rs 81,508) | Rs 4,51,508 |
| 2. | Deductions under savings (Section 80C, 80CCC, 80CCD, 80D etc) | Rs 1,00,000 |
| 3. | Net Taxable income | Rs 3,51,508 |
| 4. | 10% Tax for below 3,00,000 | Rs 14,000 |
| 4. | 20% Tax for above 3,00,000 | Rs 10,302 |
| 4. | Tax Payable on Sl 3 | Rs 24,302 |
| 4 (a) | Education Cess | Rs 729 |
| 5. | Total Tax Payable | Rs 25,031 |
IT PAYABLE AFTER SUBMITTING FORM 10-E (TABLE B)
| Sl No | Details | Amount |
|---|---|---|
| 1. | Income chargeable under "Salaries" excluding the 60% arrears | Rs 3,70,000 |
| 2. | Deductions under savings (Section 80C, 80CCC, 80CCD, 80D etc) | Rs 1,00,000 |
| 3. | Net Taxable income | Rs 2,70,000 |
| 4. | Tax Payble on Sl 3 | Rs 11,000 |
| 4(a) | Education cess | Rs 330 |
| 5 | Total Tax Payable | Rs 11,330 |
| 6 | Excluding arrear amount for tax calculated as | Rs 13,701 |
| 6 | Tax Payable for previous year (After revising income of previous year - as per Form 10E) | Rs 6,940 |
| 8 | Relief eligible | Rs 6,761 |
How to calculate Income Tax 10E / 89(1) Relief
| Previous Year(s) | Net Taxable income of the relevant previous years | Distribution of 60% arrears to the relevant years | Total income with arrears during the relevant years (2+3) | Tax on total income without latest arrears distributed (tax on 2) | Tax on total income with latest arrears distributed (tax on 4) | Difference in tax during relevant years on account of arrears (6-5) |
|---|---|---|---|---|---|---|
| 2005-06 | 134080 | 7565 | 141645 | 3476 | 4248 | 772 |
| 2006-07 | 122370 | 31662 | 154032 | 2282 | 5922 | 3640 |
| 2007-08 | 92250 | 29595 | 121845 | 0 | 1221 | 1221 |
| 2008-09 | 215860 | 12686 | 228546 | 6784 | 8091 | 1307 |
Good job done by you, thanks for this guidance.
ReplyDeletePlease provide also an example of salary crossing 5 lacs p.a. during 2009-10 along with procedure of IT department Whether it is mandatory to all DDOs or not. If not. then each person will file an IT return with refund claim. My office DDO is not agreeing to give rebate accordingly.
good but u dont said about there years calculation of income tax. without this meaning less. pl. give guidlines about said information.
ReplyDeletePlease let the all concerned know the following details:-
ReplyDelete(a) My employer has deducted the tax at source and remitted the amount to the IT authorities.
(b) Whether Form-10E should be submitted along with the IT return or separately.
(c) Should I indicate the details of excess recovery of tax in refund column of IT return.
Please let some body clear the following doubts when employer deducts the tax at source and remits the amount to I-Tax authorities:-
ReplyDelete(a) Should individual assessee claim refund of excess recovery of tax in refund column of IT return indicating the details.
(b) Whether Form-10E should be submitted along with the IT return or separately.