IT relief Tool for Senior Citizens-Thanks Gconnect.in

As demanded by many of GConnect members and readers, the GConnect tool for calculating Income tax relief under Section 89(1) now caters Senior Citizens also.

The following are the provisions under Income tax Act for providing relief in respect of Arrears of income that originally due in the previous years.

The Calculation involves distribution of the arrears to the previous years.

We provide here the flow chart of this calculation

Method to calculate Relief under Section 89(1)
A=Tax for current year on the income without total arrears received this year
B=Tax for current year on the income with total arrears received this year
Additional tax on account of total arrears received this year = B-A
x1=tax for 2006-07 on the income without arrears pertaining to that year
x2=tax for 2006-07 on the income with arrears pertaining to that year
additional tax for 2006-07 on account of distributing arrears to 2006-07=x2-x1=X
y1=tax for 2007-08 on the income without arrears pertaining to that year
y2=tax for 2007-08 on the income with arrears pertaining to that year
additional tax for 2007-08 on account of distributing arrears to 2007-08=y2-y1=Y
z1=tax for 2008-09 on the income without arrears pertaining to that year
z2=tax for 2008-09 on the income with arrears pertaining to that year
additional tax for 2008-09 on account of distributing arrears to 2007-08=z2-z1=Z
Relief = (B-A)-(X+Y+Z); if you get negative value relief is nil

Click here to proceed to IT relief Tool for Senior Citizens

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