89 Relief Calculator for Fy 2014 15

This calculator helps you determine the 89 relief amount for the financial year 2014-15. 89 relief is a tax deduction available under Indian tax laws that allows businesses to claim a deduction for certain expenses related to the maintenance of machinery and equipment.

What is 89 Relief?

89 relief is a tax deduction available under Section 89 of the Income Tax Act, 1961. It allows businesses to claim a deduction for the depreciation of certain assets, such as machinery and equipment, over their useful life.

The relief is calculated based on the depreciation allowance claimed under Section 32 of the Income Tax Act. The amount of 89 relief is limited to 20% of the total depreciation allowance claimed.

89 relief is available only to companies and not to individuals. The relief is available only for the financial year 2014-15 and not for subsequent years.

How to Calculate 89 Relief

To calculate 89 relief, you need to follow these steps:

Determine the total depreciation allowance claimed under Section 32 of the Income Tax Act.
Calculate 20% of the total depreciation allowance.
This 20% is the amount of 89 relief that can be claimed.

89 Relief = 20% × Total Depreciation Allowance

The total depreciation allowance is the sum of the depreciation allowances claimed for all the assets in the business. The depreciation allowance is calculated based on the useful life of the asset and the cost of the asset.

Example Calculation

Let's consider an example to understand how to calculate 89 relief. Suppose a company has claimed a total depreciation allowance of ₹1,00,000 for the financial year 2014-15.

To calculate 89 relief, you need to multiply the total depreciation allowance by 20%.

89 Relief = 20% × ₹1,00,000 = ₹20,000

Therefore, the company can claim a 89 relief of ₹20,000 for the financial year 2014-15.

Description	Amount (₹)
Total Depreciation Allowance	1,00,000
89 Relief (20%)	20,000

Frequently Asked Questions

What is the maximum amount of 89 relief that can be claimed?

The maximum amount of 89 relief that can be claimed is 20% of the total depreciation allowance claimed under Section 32 of the Income Tax Act.

Is 89 relief available to individuals?

No, 89 relief is available only to companies and not to individuals.

Is 89 relief available for the financial year 2015-16?

No, 89 relief is available only for the financial year 2014-15 and not for subsequent years.