Tax calculation
This query is : Resolved
15 May 2014
SIR,
I HAD TO RECIEVE 12 MONTH SALARY & ABOUT 1 LAKH AS PAY AREARS
DURING FY 2013-14.BUT I RECIEVED PAY FOR 11 MONTHS DURING THAT PERIOD.
MY QUERY IS
1. CAN I TAKE SALARY FOR THE 12 MONTHS AS WELL AS AREAR IN MY ITR FOR FY 2013-14 EVENIF MY EMPLOYER DOES NOT MENTION THAT
SALARY & AREAR IN FORM 16.
OR
2. I HAD TO TAKE THAT SALARY AND AREAR IN CURRENT FINANCIAL YEAR.
IF I TAKE CONDITION 2 ,I HAD TO TAKE REFUND FROM INCOME TAX DEPTT. OTHERWISE GET ADJUSTED ON ITS OWN.
I HAD TO RECIEVE 12 MONTH SALARY & ABOUT 1 LAKH AS PAY AREARS
DURING FY 2013-14.BUT I RECIEVED PAY FOR 11 MONTHS DURING THAT PERIOD.
MY QUERY IS
1. CAN I TAKE SALARY FOR THE 12 MONTHS AS WELL AS AREAR IN MY ITR FOR FY 2013-14 EVENIF MY EMPLOYER DOES NOT MENTION THAT
SALARY & AREAR IN FORM 16.
OR
2. I HAD TO TAKE THAT SALARY AND AREAR IN CURRENT FINANCIAL YEAR.
IF I TAKE CONDITION 2 ,I HAD TO TAKE REFUND FROM INCOME TAX DEPTT. OTHERWISE GET ADJUSTED ON ITS OWN.
16 May 2014
Dear Ravi,
first when you calculate the salary you have to put first figure as gross salary which means what you received in F.Y. 2013-14 total amount of salary including perks,perquisites,areas etc etc)then you have to put amount under sec.10(calculation of exemption requires here) and then deduction under VIA. after all the process you will received taxable amount from you have calculate tax then edu.cess. By doing this you will get total tax payable amount and if you have any relief u/s 89(1)(on arrears) then you have to less from total tax payable. now you have final tax amount. less from tds,tcs,advance tax. at the end you have payable or refundable amount.
first when you calculate the salary you have to put first figure as gross salary which means what you received in F.Y. 2013-14 total amount of salary including perks,perquisites,areas etc etc)then you have to put amount under sec.10(calculation of exemption requires here) and then deduction under VIA. after all the process you will received taxable amount from you have calculate tax then edu.cess. By doing this you will get total tax payable amount and if you have any relief u/s 89(1)(on arrears) then you have to less from total tax payable. now you have final tax amount. less from tds,tcs,advance tax. at the end you have payable or refundable amount.
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16 May 2014
above is the process of calculation of the income tax.
but for your Query
1, yes you have to take both salary & arrears in your ITR even if your employer don't give you form 16 or not mention in form 16. (for employer they must have to show proper amount in Form 16)
2, you don't do that if you received arrears in f.y. 2013-14 then you have to show that amount in f.y. 2013-14 also. you cannot take into f.y. 2014-15. yes, you can avail relief of sec. 89(1) if arrears is not received for same f.y. but its all about calculation how much amount you will be take as relief.
but for your Query
1, yes you have to take both salary & arrears in your ITR even if your employer don't give you form 16 or not mention in form 16. (for employer they must have to show proper amount in Form 16)
2, you don't do that if you received arrears in f.y. 2013-14 then you have to show that amount in f.y. 2013-14 also. you cannot take into f.y. 2014-15. yes, you can avail relief of sec. 89(1) if arrears is not received for same f.y. but its all about calculation how much amount you will be take as relief.
16 May 2014
There is slight confusion.let me clarify
1.can i take 12 month salary in previous year even if i recieved 11 month salary in previous year in my account & rest 1 month in curent year.
2.I m recieving arear in fy 2014_15 which i had to recieve in previous year.for that can i to take that arear in previous year or take in current year.
1.can i take 12 month salary in previous year even if i recieved 11 month salary in previous year in my account & rest 1 month in curent year.
2.I m recieving arear in fy 2014_15 which i had to recieve in previous year.for that can i to take that arear in previous year or take in current year.
16 May 2014
good question ravikant,
1, firstly,we have to follow financial years which is from April to march, 12 months in a year. so 12 months salary should be shown in a year.
its a matter of your employer's company policy.
if it is mercantile then follow apr to mar
if it is cash basis then if march paid in april then mar to feb
but point is if you work for 12 month then salary should be shown for 12 months ok.
2, if you received arrears in f.y. 2014-15 then it will be in 14-15. but you can calculate relief of sec. 89(1). its depend upon calculation.
1, firstly,we have to follow financial years which is from April to march, 12 months in a year. so 12 months salary should be shown in a year.
its a matter of your employer's company policy.
if it is mercantile then follow apr to mar
if it is cash basis then if march paid in april then mar to feb
but point is if you work for 12 month then salary should be shown for 12 months ok.
2, if you received arrears in f.y. 2014-15 then it will be in 14-15. but you can calculate relief of sec. 89(1). its depend upon calculation.
16 May 2014
Thanx for resolving my confusion.as per ur presumption, i should take arear incurent year & its relief too.
16 May 2014
you are always welcome.
if you have any further doubt you can ask or send pm also.
i will try to help you again.
if you have any further doubt you can ask or send pm also.
i will try to help you again.
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