Now it is Compulsory to upload 10E Form for Claim Relief U/s 89(1) to the Income Tax Department as XML File Format other wise Rebate will be rejected


Income Tax Department has disallowed relief u/s 89(1) which was claimed by Assessee during his/her filing of Income Tax Return for the Assessment Year 2015-16.   Earlier there was no doubt in claiming such relief  up to A.Y. 2014-15 from Income Tax Department. Simply Assessee claims in ITR form and Income Tax Department allows the same as claimed by Assessee.  

                But now, w.e.f. Assessment Year 2015-16, It is compulsory  to upload online 10E form otherwise claim will be rejected and demand will be raised by I.T. Department. 

                All  Assessees who had already claimed rebate u/s 89(1) in the A.Y. 2015-16 have been informed by Income Tax Department through intimation order under section 143(1) that claim amount of rebate has been rejected and raised demand along with interest for the same. 

                 Procedure to upload 10E Form

                 It is clear without uploading 10E form , relief under section 89(1) can not be claimed.  Now question is that how can we upload 10E Form along with ITR-1 (Sahaj), ITR-2  etc Forms.

     It has been found that 10E form is not ITR forms.   10E form is other than ITR form which is available in income tax website  after login for E-Filing of  incometaxindiaefiling.gov.in 

as shown in below Snapshot :-







Download Arrears Relief Calculator Since the Financial Year 2000-01 to 2015-16


Income Tax Department has disallowed relief u/s 89(1) which was claimed by Assessee during his/her filing of Income Tax Return for the Assessment Year 2015-16.   Earlier there was no doubt in claiming such relief  up to A.Y. 2014-15 from Income Tax Department. Simply Assessee claims in ITR form and Income Tax Department allows the same as claimed by Assessee.  

                But now, w.e.f. Assessment Year 2015-16, It is compulsory  to upload online 10E form otherwise claim will be rejected and demand will be raised by I.T. Department. 

                All  Assessees who had already claimed rebate u/s 89(1) in the A.Y. 2015-16 have been informed by Income Tax Department through intimation order under section 143(1) that claim amount of rebate has been rejected and raised demand along with interest for the same. 

                 Procedure to upload 10E Form

                 It is clear without uploading 10E form , relief under section 89(1) can not be claimed.  Now question is that how can we upload 10E Form along with ITR-1 (Sahaj), ITR-2  etc Forms.

     It has been found that 10E form is not ITR forms.   10E form is other than ITR form which is available in income tax website  after login for E-Filing of  incometaxindiaefiling.gov.in 

as shown in below Snapshot :-







Download Arrears Relief Calculator Since the Financial Year 2000-01 to 2015-16

Main Changes in Income Tax applicable to the Salaried Persons for F.Y.2016-17 and A.Y.2017-18, With All in One TDS on Salary for Govt and Non-Govt employees for F.Y.2016-17

INCOME TAX RULES APPLICABLE FOR FY 2016-17AS PER BUDGET 2016:-

Download the All in One TDS on Salary for Govt and Non-Govt employees for Financial Year 2016-17 & Assessment Year 2017-18 [ This Excel Based Software can prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure for Govt & Non-Govt employees Salary Pattern + Automatic Arrears Relief Calculator U/s 89(1) with Form 10E up to F.Y.2016-17 + Automatic H.R.A. Exemption Calculation + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17 as per Finance Budget 2016]


1.               No change in income tax slab for FY 2016-17. Basic exemption limit is same    Rs.2,50,000 for non-senior citizen and Rs.3,00,000 for senior citizen.
2.               There is no change in income tax rate for fy 2016-17.
3.               Additional deduction of Rs.3000 is available u/s 87A. Now,  Section 87A will provide Rs.5000.
4.               The rate of surcharge is increased from 12% to 15% for income more than Rs. 1 crore.
5.               Additional Rs.50000 income tax deduction for interest on housing loan is available for the first-time buyer of the house. The loan should not be more Rs.35 lakhs and cost of the house should not be more than Rs.50 Lakhs.
6.               Section 80GG deduction is increased from Rs. 24,000 to Rs.60,000.
7.               Withdrawal from national pension scheme at the time of retirement is exempt subject to 40% of withdrawal.
8.               Similarly, 40% withdrawal from supper annotation fund is also exempt.
9.               Any payment received from sukanya samriddhi scheme is exempt.
10.          For deduction under section 80DDB, the limit is increased from Rs. 60,000 to Rs.80,000.
11.          Deduction limit for Section 80D is increased by Rs.10,000 for nonsenior citizen and senior citizen. For the nonsenior citizen, the limit is Rs. 25,000 and for the senior citizen, the limit is Rs. 30,000.
12.          Deduction limit for section 80DD has been increased from Rs. 50,000 to Rs.75,000. For severe disability, the limit is increased from Rs. 1 Lakhs to Rs.1.25 Lakhs.
13.          For contribution to NPS ( National Pension Scheme) under section 80CCD, the limit is increased from Rs. 1.5 Lakhs. Additional deduction up to Rs. 50,000 is allowed for contribution above Rs. 1.5 Lakhs in the national pension scheme.
14.          Dividend income will be taxed at 10%- applicable to individual and HUF receiving dividend income more than Rs. 10 Lakhs.
15.          If the assessee has made the investment in certain categories, the capital gain will not be taxed.

16.          Transport allowance exemption limit has been increased from Rs. 800 to Rs.1,600 p.m. for salary income.

INCOME TAX RULES APPLICABLE FOR FY 2016-17AS PER BUDGET 2016:-

Download the All in One TDS on Salary for Govt and Non-Govt employees for Financial Year 2016-17 & Assessment Year 2017-18 [ This Excel Based Software can prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure for Govt & Non-Govt employees Salary Pattern + Automatic Arrears Relief Calculator U/s 89(1) with Form 10E up to F.Y.2016-17 + Automatic H.R.A. Exemption Calculation + Automated Form 16 Part A&B and Form 16 Part B for F.Y.2016-17 as per Finance Budget 2016]


1.               No change in income tax slab for FY 2016-17. Basic exemption limit is same    Rs.2,50,000 for non-senior citizen and Rs.3,00,000 for senior citizen.
2.               There is no change in income tax rate for fy 2016-17.
3.               Additional deduction of Rs.3000 is available u/s 87A. Now,  Section 87A will provide Rs.5000.
4.               The rate of surcharge is increased from 12% to 15% for income more than Rs. 1 crore.
5.               Additional Rs.50000 income tax deduction for interest on housing loan is available for the first-time buyer of the house. The loan should not be more Rs.35 lakhs and cost of the house should not be more than Rs.50 Lakhs.
6.               Section 80GG deduction is increased from Rs. 24,000 to Rs.60,000.
7.               Withdrawal from national pension scheme at the time of retirement is exempt subject to 40% of withdrawal.
8.               Similarly, 40% withdrawal from supper annotation fund is also exempt.
9.               Any payment received from sukanya samriddhi scheme is exempt.
10.          For deduction under section 80DDB, the limit is increased from Rs. 60,000 to Rs.80,000.
11.          Deduction limit for Section 80D is increased by Rs.10,000 for nonsenior citizen and senior citizen. For the nonsenior citizen, the limit is Rs. 25,000 and for the senior citizen, the limit is Rs. 30,000.
12.          Deduction limit for section 80DD has been increased from Rs. 50,000 to Rs.75,000. For severe disability, the limit is increased from Rs. 1 Lakhs to Rs.1.25 Lakhs.
13.          For contribution to NPS ( National Pension Scheme) under section 80CCD, the limit is increased from Rs. 1.5 Lakhs. Additional deduction up to Rs. 50,000 is allowed for contribution above Rs. 1.5 Lakhs in the national pension scheme.
14.          Dividend income will be taxed at 10%- applicable to individual and HUF receiving dividend income more than Rs. 10 Lakhs.
15.          If the assessee has made the investment in certain categories, the capital gain will not be taxed.

16.          Transport allowance exemption limit has been increased from Rs. 800 to Rs.1,600 p.m. for salary income.

All in One TDS on Salary for F.Y.2016-17,With New Amended Tax Section for F.Y.2016-17

Changes in Income Tax Rules as per the Finance Budget 2016-17 & A.Y.2017-18:

1. There has been no change in the income tax slabs for the Financial Year 2016-17 & Assessment Year 2017-18.

2. For people with net taxable income below Rs 5 lakh, the tax rebate has been increased from Rs 2,000 to Rs 5,000 u/s 87A. This would benefit people who have net taxable income between Rs 2.7 Lakhs to Rs 5 Lakhs.

3. Additional exemption for first time home buyer up to Rs. 50,000 on interest paid on housing loans. This would be applicable where the property cost is below Rs 50 Lakhs and the home loan is below Rs 35 lakhs. The loan should be sanctioned on or after April 1, 2016.

4. Tax Exemption u/s 80GG (for rent expenses who do have HRA component in salary) has been increased from Rs 24,000 to Rs 60,000 per annum. This is a good move to align the exemption amount with today’s rent and keep the section relevant.

5. For people with net taxable income above Rs 1 crore, the surcharge has been increased from 12% to 15%

6. Dividend Income in excess of Rs. 10 lakh per annum to be taxed at 10%

7. 40% of lump sum withdrawal on NPS at maturity would be exempted from Tax. This rule now also applies to EPF. So now in the case of EPF income tax would be applicable on 60% of the corpus in maturity.

8. Presumptive taxation scheme introduced for professionals with receipts up to Rs. 50 lakhs. The presumptive income would be 50% of the revenues.
Download All in One TDS on Salary for Govt & Non-Govt employees for F.Y.2016-17 & A.Y.2017-18 [This Excel Based Software can prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure + Automated Arrears Relief Calculation with Form 10E up to F.Y.2016-17 + Automatic H.R.A. Exemption Calculation + Automated Form 16 Part A&B + Automated Form 16 Part B ]


1. Section 80C/80CCC/80CCD

These 3 are the most popular sections for tax saving and have a lot of options to save tax. The maximum exemption combining all the above sections is Rs 1.5 lakhs. 80CCC deals with the pension products while 80CCD includes Central Government Employee Pension Scheme.
You can choose from the following for tax saving investments:
1.                 Employee/ Voluntary Provident Fund (EPF/VPF)
2.                 PPF (Public Provident fund)
3.                 Sukanya Samriddhi Account
4.                 National Saving Certificate (NSC)
5.                 Senior Citizen’s Saving Scheme (SCSS)
6.                 5 years Tax Saving Fixed Deposit in banks/post offices
7.                 Life Insurance Premium
8.                 Pension Plans from Life Insurance or Mutual Funds
9.                 NPS (New Pension Scheme)
10.             Equity Linked Saving Scheme (ELSS – popularly known as Tax Saving Mutual Funds)
11.             Central Government Employee Pension Scheme
12.             Principal Payment on Home Loan
13.             Stamp Duty and registration of the House
14.             Tuition Fee for 2 children

2. Section 80CCD(1B) – Investment in NPS

Budget 2015 has allowed additional exemption of Rs 50,000 for investment in NPS. We have done a complete analysis and concluded that it would be beneficial for you to discard this benefit and invest after-tax money in a good equity mutual fund.
Download All in One TDS on Salary for Central Govt Employees for F.Y.2016-17 & A.Y.2017-18 [This Excel Based Software can prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure as per Central Govt Salary Patterns + Automatic H.R.A. Exemption Calculation + Automated Form 16 Part A&B + Automated Form 16 Part B ]


3. Payment of interest on Home Loan (Section 24/80EE)

The interest paid up to Rs 2 lakhs on home loan for the self-occupied home is exempted u/s 24. There is no limit for home given on rent.
Budget 2016 has provided additional exemption up to Rs 50,000 for payment of home loan interest for first time home buyers. To avail this benefit the value of the home should not exceed Rs 50 lakhs and loan should not be more than Rs 35 lakhs.

4. Payment of Interest on Education Loan (Section 80E)

The total interest paid on education loan can be claimed as tax exemption. There is no upper limit for the same.

5. Investment in RGESS (Section 80CCG)

Deduction Up to Rs 25,000 (50% of the amount invested) is allowed if you make the investment in preapproved stocks and mutual funds in Rajiv Gandhi Equity Savings Scheme (RGESS). This is available to first-time equity investors subject to certain conditions.

6. Medical insurance for Self and Parents (Section 80D)

You can get the tax deduction up to Rs 60,000 by paying the medical insurance premium for self, your dependents, and your parents. There is also sub-limit of Rs 5,000 for the preventive medical checkup.

7. Treatment of Serious disease (Section 80DDB)

You can claim deduction up to Rs 80,000 for treatment of certain diseases like AIDS, renal failure, etc for self or dependents

8. Physically Disabled Tax-payer (Section 80U)

Physically Disabled Tax-payer can get tax exemption up to Rs 1.25 lakhs u/s 80U

9. Physically Disabled Dependent (Section 80DD)

You can claim deduction up to Rs 1.25 lakhs for maintenance and medical treatment of Physically Disabled dependent

10. Donations to Charitable Institutions (Section 80G)

Deduction up to Rs 40,000 is allowed for Donation to certain charitable funds, charitable institutions, etc.

11. Donations to Charitable Institutions (Section 80GGA)

Deduction up to Rs 1 lakh is allowed for donations for scientific research or rural development

12. Donations to Charitable Institutions (Section 80GGC)

Deduction up to Rs 60,000 is allowed for donations to political parties
Download All in One TDS on Salary for Only Non-Govt employees for F.Y.2016-17 & A.Y.2017-18 [This Excel Based Software can prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure as per Non-Govt Salary Patterns + Automatic H.R.A. Exemption Calculation + Automated Form 12 BA + Automated Form 16 Part A&B + Automated Form 16 Part B ]


Along with the tax saving options, it also has details about all the common salary components and their tax treatment. This section can help you to plan your salary components in case your company offers such facility.

We hope that this eBook would help you in understanding, planning and saving taxes.

Changes in Income Tax Rules as per the Finance Budget 2016-17 & A.Y.2017-18:

1. There has been no change in the income tax slabs for the Financial Year 2016-17 & Assessment Year 2017-18.

2. For people with net taxable income below Rs 5 lakh, the tax rebate has been increased from Rs 2,000 to Rs 5,000 u/s 87A. This would benefit people who have net taxable income between Rs 2.7 Lakhs to Rs 5 Lakhs.

3. Additional exemption for first time home buyer up to Rs. 50,000 on interest paid on housing loans. This would be applicable where the property cost is below Rs 50 Lakhs and the home loan is below Rs 35 lakhs. The loan should be sanctioned on or after April 1, 2016.

4. Tax Exemption u/s 80GG (for rent expenses who do have HRA component in salary) has been increased from Rs 24,000 to Rs 60,000 per annum. This is a good move to align the exemption amount with today’s rent and keep the section relevant.

5. For people with net taxable income above Rs 1 crore, the surcharge has been increased from 12% to 15%

6. Dividend Income in excess of Rs. 10 lakh per annum to be taxed at 10%

7. 40% of lump sum withdrawal on NPS at maturity would be exempted from Tax. This rule now also applies to EPF. So now in the case of EPF income tax would be applicable on 60% of the corpus in maturity.

8. Presumptive taxation scheme introduced for professionals with receipts up to Rs. 50 lakhs. The presumptive income would be 50% of the revenues.
Download All in One TDS on Salary for Govt & Non-Govt employees for F.Y.2016-17 & A.Y.2017-18 [This Excel Based Software can prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure + Automated Arrears Relief Calculation with Form 10E up to F.Y.2016-17 + Automatic H.R.A. Exemption Calculation + Automated Form 16 Part A&B + Automated Form 16 Part B ]


1. Section 80C/80CCC/80CCD

These 3 are the most popular sections for tax saving and have a lot of options to save tax. The maximum exemption combining all the above sections is Rs 1.5 lakhs. 80CCC deals with the pension products while 80CCD includes Central Government Employee Pension Scheme.
You can choose from the following for tax saving investments:
1.                 Employee/ Voluntary Provident Fund (EPF/VPF)
2.                 PPF (Public Provident fund)
3.                 Sukanya Samriddhi Account
4.                 National Saving Certificate (NSC)
5.                 Senior Citizen’s Saving Scheme (SCSS)
6.                 5 years Tax Saving Fixed Deposit in banks/post offices
7.                 Life Insurance Premium
8.                 Pension Plans from Life Insurance or Mutual Funds
9.                 NPS (New Pension Scheme)
10.             Equity Linked Saving Scheme (ELSS – popularly known as Tax Saving Mutual Funds)
11.             Central Government Employee Pension Scheme
12.             Principal Payment on Home Loan
13.             Stamp Duty and registration of the House
14.             Tuition Fee for 2 children

2. Section 80CCD(1B) – Investment in NPS

Budget 2015 has allowed additional exemption of Rs 50,000 for investment in NPS. We have done a complete analysis and concluded that it would be beneficial for you to discard this benefit and invest after-tax money in a good equity mutual fund.
Download All in One TDS on Salary for Central Govt Employees for F.Y.2016-17 & A.Y.2017-18 [This Excel Based Software can prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure as per Central Govt Salary Patterns + Automatic H.R.A. Exemption Calculation + Automated Form 16 Part A&B + Automated Form 16 Part B ]


3. Payment of interest on Home Loan (Section 24/80EE)

The interest paid up to Rs 2 lakhs on home loan for the self-occupied home is exempted u/s 24. There is no limit for home given on rent.
Budget 2016 has provided additional exemption up to Rs 50,000 for payment of home loan interest for first time home buyers. To avail this benefit the value of the home should not exceed Rs 50 lakhs and loan should not be more than Rs 35 lakhs.

4. Payment of Interest on Education Loan (Section 80E)

The total interest paid on education loan can be claimed as tax exemption. There is no upper limit for the same.

5. Investment in RGESS (Section 80CCG)

Deduction Up to Rs 25,000 (50% of the amount invested) is allowed if you make the investment in preapproved stocks and mutual funds in Rajiv Gandhi Equity Savings Scheme (RGESS). This is available to first-time equity investors subject to certain conditions.

6. Medical insurance for Self and Parents (Section 80D)

You can get the tax deduction up to Rs 60,000 by paying the medical insurance premium for self, your dependents, and your parents. There is also sub-limit of Rs 5,000 for the preventive medical checkup.

7. Treatment of Serious disease (Section 80DDB)

You can claim deduction up to Rs 80,000 for treatment of certain diseases like AIDS, renal failure, etc for self or dependents

8. Physically Disabled Tax-payer (Section 80U)

Physically Disabled Tax-payer can get tax exemption up to Rs 1.25 lakhs u/s 80U

9. Physically Disabled Dependent (Section 80DD)

You can claim deduction up to Rs 1.25 lakhs for maintenance and medical treatment of Physically Disabled dependent

10. Donations to Charitable Institutions (Section 80G)

Deduction up to Rs 40,000 is allowed for Donation to certain charitable funds, charitable institutions, etc.

11. Donations to Charitable Institutions (Section 80GGA)

Deduction up to Rs 1 lakh is allowed for donations for scientific research or rural development

12. Donations to Charitable Institutions (Section 80GGC)

Deduction up to Rs 60,000 is allowed for donations to political parties
Download All in One TDS on Salary for Only Non-Govt employees for F.Y.2016-17 & A.Y.2017-18 [This Excel Based Software can prepare at a time Tax Compute Sheet + Individual Salary Sheet + Individual Salary Structure as per Non-Govt Salary Patterns + Automatic H.R.A. Exemption Calculation + Automated Form 12 BA + Automated Form 16 Part A&B + Automated Form 16 Part B ]


Along with the tax saving options, it also has details about all the common salary components and their tax treatment. This section can help you to plan your salary components in case your company offers such facility.

We hope that this eBook would help you in understanding, planning and saving taxes.