plz tell me that if i am receiving my last year's salary in this fy in june how is the calculation of tax for the last year will be done...something like form 10E is said to be filed for savings of the last year..plz guide thanks asked Mar 04 '11 at 12:43 by Ashish 1●1●1 |
Under section 89(1) of income tax, you can claim income tax exemption for arrears received. For tax exemption computation, add arrears amount to year's salary for which year these have been received. Compute income tax on that additional amount as per tax rates of that year. Now do the same by counting arrears in current year. The difference of the income tax can be exempted u/s 89(1). You may download Form 10E for claiming relief under section 89(1) here. answered Mar 10 '11 at 04:17 by pankaj 5.2k●3●20 |