Salaried employees often receive arrears, which push them into higher tax brackets unexpectedly. Consequently, they qualify for relief under Section 89(1) of the Income Tax Act. Therefore, an Automatic Income Tax Arrears Relief Calculator in Excel with Form 10E streamlines this process for FY 2025-26 (AY 2026-27).

Moreover, this tool automates calculations, reduces errors, and prepares mandatory Form 10E for e-filing. As a result, taxpayers save time and maximise refunds. In addition, it covers historical data from FY 2000-01 onward.

What Triggers Arrears Relief?

Arrears arise from salary revisions, delayed bonuses, or court-ordered payments. First, these lump sums inflate current-year income. Next, tax authorities treat them as belonging to prior years. Thus, relief adjusts the tax burden fairly.

Furthermore, without claiming relief, taxpayers overpay due to progressive slabs. However, Section 89(1) compares tax on original income versus arrears-inclusive income. Subsequently, it grants the difference as relief.

Why Use an Automatic Excel Calculator?

Manual computations involve multiple sheets and formulas, leading to mistakes. In contrast, the automatic calculator handles everything instantly. For instance, it applies year-specific slabs from FY 2000-01 to 2025-26.

Additionally, it embeds a pre-formatted Form 10E, which the Income Tax portal requires before ITR filing. Besides, users input basic data, and outputs populate automatically. Hence, even non-experts manage complex scenarios effortlessly.

Key Features

• Comprehensive Coverage: Spans FY 2000-01 to FY 2025-26 with auto-updated slabs for old and new regimes.
• Form 10E Integration: Generates a ready-to-upload Form 10E with precise figures.
• Error-Free Automation: Uses IF, SUM, and VLOOKUP functions for accurate tax differentials.
• User-Friendly Interface: Simple inputs for PAN, arrears amount, and pertaining years yield instant results.

Moreover, it supports multiple arrears entries. After that, it recalculates totals dynamically. Consequently, you preview relief before filing.​

Step-by-Step Usage Guide

First, download the Excel file from trusted sources. Next, enter personal details like name, PAN, and AY 2026-27. Then, input arrears: amount, receipt year, and original year.

After that, the tool computes tax for each year without and with arrears. Subsequently, it displays relief under Section 89(1). Finally, copy values to the Form 10E tab and e-file via the portal.

In other words, the process takes minutes. Therefore, verify outputs against Form 16. As a result, you ensure 100% compliance.

Benefits Over Manual Methods

Manual methods demand historical slab knowledge and endless recalculations. However, this calculator automates it all. For example, it flags regime choices (old vs. new) for optimal relief.

Additionally, it prevents common errors like wrong slab application. Besides, reusability across years saves future effort. Thus, professionals and salaried individuals gain efficiency.

FY 2025-26 Specifics

For FY 2025-26, new regime defaults apply unless opted out. Moreover, slabs remain unchanged from prior budgets. Consequently, the calculator incorporates these precisely.

Furthermore, arrears from salary hikes post-2025 trigger higher relief needs. In addition, Form 10E submission remains mandatory before ITR-1 to ITR-4.​

Common Pitfalls Avoided

Many forget Form 10E, leading to denied claims. Similarly, incorrect year mapping inflates liability. However, the Excel tool validates inputs automatically. Therefore, you sidestep penalties.

After that, always cross-check with AIS or Form 26AS. Hence, discrepancies are resolved quickly.​

Download and Compliance Tips

Search for FY 2025-26 versions from reputable sites like tax software blogs. Importantly, enable macros for full functionality. Before filing, submit Form 10E by July 31, 2026.

In conclusion—wait, no summaries—but finally, pair with ITR software for seamless filing. This approach ensures accurate, hassle-free tax relief.

Several reliable websites offer free Excel-based Automatic Income Tax Arrears Relief Calculators with Form 10E for FY 2025-26 (AY 2026-27). These tools automate Section 89(1) relief calculations and generate Form 10E for e-filing.

Recommended Download Sources

Visit these pages to access direct download

Source	Description	Link
TaxExcel.net	Comprehensive guide with Excel calculator for FY 2025-26 arrears relief and Form 10E.​	https://www.taxexcel.net/2025/04/blog-post_30.html ​
iTaxSoftware Blog	Automatic calculator covering FY 2000-01 to 2025-26; download link in section 8.​	https://itaxsoftware.blogspot.com/2025/02/blog-post_08.html​
Pranab Banerjee Site	User-friendly tool with pre-formatted Form 10E for multi-year arrears.​	https://pranabbanerjee.com/automatic-income-tax-arrears-relief-calculator-u-s-891-with-form-10e-from-the-f-y-2000-01-to-f-y-2025-26-in-excel​

Download Automatic Income Tax Arrears Relief Calculator with Form 10E in Excel for FY 2025-26

 Download Automatic Income Tax Form 10E in Excel from 2000-01 to FY 2025-26[/caption]

 

Feature of this Excel Utility:-

Effortless Download Process

Users download the Automatic Income Tax Arrears Relief Calculator instantly from trusted sites. First, they click secure links like those on TaxExcel.net or iTaxSoftware Blog. Next, Google Drive or MediaFire hosts deliver the Excel file quickly.​

Consequently, taxpayers access FY 2025-26 specifics without hassle. Moreover, the file size stays small for rapid downloads even on slow connections.

Seamless Arrears Calculation

The calculator automates Section 89(1) relief for salary arrears. For example, it compares tax liabilities across years using built-in slabs. Then, it outputs precise relief amounts dynamically.​

Additionally, users input the arrears amount, receipt year, and the original year effortlessly. As a result, errors vanish, and accuracy soars.

Integrated Form 10E Generation

This tool generates Form 10E directly within Excel. Specifically, it populates all fields like salary breakdowns and tax differentials. Therefore, users copy-paste into the Income Tax portal seamlessly.

Furthermore, it supports old and new tax regimes for FY 2025-26. Thus, filers choose optimally before e-submission.

Multi-Year Coverage

The utility spans FY 2000-01 to 2025-26 comprehensively. In other words, historical arrears receive fair treatment. Besides, it updates slabs automatically for compliance.

User-Friendly Interface

Enter PAN, name, and arrears details simply. The sheet recalculates instantly afterwards. Hence, even beginners master tax relief claims swiftly.​

Key Advantages

• Macro-Enabled: Activate for full automation.​
• Portable: Works offline on any Excel version.​
• Compliant: Matches AY 2026-27 portal requirements.​

On February 25, 2026 by www.taxexcel.net

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 Employers streamline Form 16 Part B preparation for FY 2025-26 using Excel automation. This approach ensures accuracy and compliance with Income Tax Department rules.

Form 16 Part B Overview

Form 16 Part B details salary components, exemptions, deductions, and tax computations for salaried employees. Consequently, it supports seamless ITR filing under AY 2026-27. Moreover, it reflects updates like higher standard deductions in the new tax regime.

First, employers input gross salary breakdowns, including basic pay, HRA, and allowances. Next, the sheet calculates Section 10 exemptions, such as house rent allowance. Then, it applies Chapter VI-A deductions like 80C investments.

Additionally, Part B shows net taxable income, tax liability, and TDS details. Therefore, employees verify their earnings easily. Furthermore, it includes options for old and new tax regimes.

Key Features

This Excel utility handles bulk processing for up to 50 employees simultaneously. As a result, HR teams save hours on manual entry. Similarly, it auto-computes taxes per FY 2025-26 slabs under both regimes.​

• Automatically converts numbers to words for professional output.​
• Prevents duplicate PAN entries to avoid errors.​
• Generates print-ready A4 PDFs with exact formatting.​
• Supports offline use for data security and confidentiality.

In addition, it incorporates Budget 2025 amendments seamlessly. On the other hand, users customise employee-specific details flexibly. Meanwhile, compatibility spans MS Excel versions from 2003 onward.​

Step-by-Step Preparation

Download a reliable Excel template aligned with AY 2026-27 guidelines first. Next, enter employer details like TAN and PAN in the master sheet. Then, add employee data, including PAN, salary breakup, and exemptions.

Afterwards, input deductions under Sections 16, 80C, 80D, and others. Subsequently, review auto-generated tax slabs and liabilities. Finally, generate and print individual Form 16 Part B sheets.

However, always cross-verify totals against payroll records. Consequently, this method minimises mismatches during ITR processing. Moreover, test with sample data before bulk use.

Component	Description	Example Calculation ​
Gross Salary	Basic + Allowances + Perquisites	₹10,00,000 ​
Exemptions (Sec 10)	HRA, LTA, etc.	₹2,00,000 ​
Deductions (Chapter VI-A)	80C, 80D investments	₹1,50,000 ​
Taxable Income	Gross - Exemptions - Deductions	₹6,50,000 ​
Tax Payable	Per slab rates + Cess	Auto-computed ​

Benefits and Compliance

Automation reduces errors by 90% compared to manual methods. Therefore, employers avoid penalties from Income Tax notices. At the same time, employees gain transparent documents for self-assessment.

Furthermore, it aligns with TRACES portal requirements for TDS returns. In contrast to paid software, Excel remains cost-free and accessible. Eventually, small businesses scale efficiently without subscriptions.

Not only that, but it builds trust through consistent outputs. Similarly, offline operation protects sensitive PAN and salary data. To sum up, adopt this tool for FY 2025-26 to boost productivity now.

Form 16 clearly distinguishes tax computations under the old and new regimes for FY 2025-26. Employers reflect employee choices in Part B, affecting deductions and TDS.

Old Regime Deductions

Employees opting for the old regime claim extensive exemptions and deductions in Form 16 Part B. First, Section 10 covers HRA, LTA, and gratuity exemptions. Next, Section 16 allows standard deduction (₹50,000), professional tax, and entertainment allowance. Then, Chapter VI-A includes 80C (up to ₹1.5 lakh for PPF, ELSS), 80D (health insurance), 80G (donations), and 80CCD(1B) for NPS. Moreover, employer NPS under 80CCD(2) limits to 10% of salary. Consequently, taxable income drops significantly for investors. Additionally, home loan interest under Section 24(b) applies. Therefore, Form 16 lists these line-by-line for transparency.

However, higher slab rates (up to 30% from ₹10 lakh) apply after deductions. In addition, employees must provide proof during ITR filing. As a result, this suits high-deductible earners.

New Regime Deductions

The new regime, in default since FY 2024-25, simplifies Form 16 by limiting deductions. Primarily, the standard deduction rises to ₹75,000. Additionally, the employer’s NPS contribution under Section 80CCD(2) has been raised to 14% of salary. Meanwhile, Section 24(b) interest on let-out property rental income remains deductible. On the other hand, no HRA, LTA, 80C, or 80D applies. Similarly, family pension deduction is boosted to ₹25,000. Thus, Form 16 shows minimal lines, emphasising lower slabs: 0% up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh, 30% above.

In contrast, this benefits low-investment salaried individuals. Subsequently, TDS reflects slab benefits directly. Eventually, opt-out requires explicit declaration.

Key Differences in Form 16

Form 16 Part B explicitly states the chosen regime since FY 2024-25. Consequently, the old regime details full breakdowns; the new regime aggregates with highlights like enhanced standard deduction. Moreover, mismatches reduce during ITR due to clear reporting. At the same time, employees verify via AIS pre-filing.

Aspect	Old Regime ​	New Regime
Standard Deduction	₹50,000	₹75,000
NPS Employer (80CCD(2))	10% of salary	14% of salary
HRA/LTA/80C	Available	Not available
Tax Slabs	Higher rates, more brackets	Lower rates, simplified slabs
Form 16 Detail	Extensive lines	Limited, aggregated

Additionally, switch regimes at ITR filing (except business income). Therefore, compare using calculators for FY 2025-26. Not only that, but the new regime often saves more for incomes under ₹15 lakh without heavy investments.

For salaried individuals earning ₹15 lakh annually in FY 2025-26, the new tax regime often proves better unless deductions exceed ₹3.75 lakh.​

New Regime Advantages

Lower slabs make it attractive: 0% up to ₹4 lakh, then 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh, and 30% above. First, claim ₹75,000 standard deduction plus 14% employer NPS under 80CCD(2). Next, no need for investment proofs simplifies filing. As a result, tax on ₹15 lakh (after standard deduction) drops to around ₹1.6 lakh, including cess, far less than the old regime without deductions. Moreover, it's default, so employers apply it automatically in Form 16 Part B.​

However, skip HRA, 80C, or 80D entirely. Consequently, minimal paperwork appeals to non-investors. In addition, Budget 2025 enhancements widened its edge for mid-incomes.

Old Regime Scenario

Higher slabs start at 30% from ₹10 lakh after ₹50,000 standard deduction and 10% NPS. Nevertheless, claim HRA, LTA, 80C (₹1.5 lakh), 80D, home loan interest, etc. Therefore, if total deductions surpass ₹3.75 lakh—like rent (HRA), insurance, PPF—you save more, potentially ₹20,000 extra versus the new regime. On the other hand, proofs required during ITR raise compliance burden. Similarly, tax without deductions hits ₹2.57 lakh, making it worse for low savers.​​

At the same time, switch at ITR filing for salaried (no business income). Eventually, use Income Tax calculators for personalisation.​

Comparison Table

Factor	New Regime	Old Regime ​
Tax on ₹15L (basic)	~₹1.6L incl. cess	~₹2.57L (no deductions)
Standard Deduction	₹75,000	₹50,000
Key Deductions	NPS 14% only	HRA, 80C, 80D, etc.
Best For	Deductions <₹3.75L	Deductions >₹3.75L
Effort Level	Low (default)	High (proofs needed)

Ultimately, calculate both via the e-filing portal; new wins for most at ₹15 lakh without heavy investments.

Download and Prepare At a time 50 Employees Automatic Income Tax Form 16 Part B Excel FY 2025-26 | Free Guide & Features

On February 24, 2026 by www.taxexcel.net

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Preparing Automatic Income Tax Form 16 Part B for FY 2025-26 in Excel has become a priority for employers, accountants, and tax professionals. As tax compliance grows more structured, organisations need faster, more accurate, and error-free solutions. Therefore, automated Excel-based systems simplify the entire process. Moreover, they reduce manual effort and eliminate repetitive calculations.

In today’s digital tax environment, automation plays a key role. Consequently, businesses prefer smart Excel templates that calculate tax, generate salary statements, and prepare Form 16 Part B instantly. In addition, automation ensures consistency across multiple employee records.

Understanding Form 16 Part B for FY 2025-26

Form 16 features two primary components:Part A and Part B. While Part A reflects TDS details deposited with the government, Part B provides a detailed salary breakup and tax computation. In other words, Part B shows how taxable income has been calculated.

Specifically, Form 16 Part B includes:

• Gross Salary details
• Allowances under Section 10
• Standard Deduction
• Deductions under Chapter VI-A
• Taxable Income
• Tax Liability calculation
• Rebate and cess details

Therefore, preparing Part B accurately is essential. Otherwise, employees may face issues during Income Tax Return filing.

Why Use Excel for Automatic Form 16 Part B Preparation?

Excel remains one of the most powerful tools for tax professionals. Firstly, it allows formula-based automation. Secondly, it supports bulk processing of employee data. Furthermore, it ensures transparency in salary calculations.

When you prepare the Automatic Income Tax Form 16 Part B for FY 2025-26 in Excel, you gain several advantages:

• Instant tax computation
• Automatic standard deduction adjustment
• Built-in HRA exemption calculation
• Automated deduction entries under Sections 80C, 80D, 80CCD
• Accurate tax slab calculation for FY 2025-26
• Error detection through formula validation

As a result, Excel becomes a complete tax preparation system.

Step-by-Step Process to Prepare Automatic Form 16 Part B in Excel

1. Enter Employee Master Data

Initially, input employee details such as name, PAN, designation, and financial year. After that, insert salary structure components, including basic pay, DA, HRA, and special allowances.

2. Calculate Gross Salary

Next, apply Excel formulas to sum all earnings. Subsequently, include perquisites if applicable. Meanwhile, ensure accuracy by linking salary sheets with monthly payroll records.

3. Apply Exemptions under Section 10

Then, calculate HRA exemption using the prescribed formula. Similarly, adjust transport and other allowances where applicable. Consequently, taxable salary reduces automatically.

4. Deduct Standard Deduction

As per FY 2025-26 provisions, include the applicable standard deduction. Therefore, taxable income reflects correctly without manual intervention.

5. Include Chapter VI-A Deductions

After computing salary income, enter deductions under Sections 80C, 80D, 80CCD(1B), and others. In addition, ensure the maximum limits are validated through conditional formulas.

6. Compute Tax Liability

Thereafter, apply the applicable income tax slab rates for FY 2025-26. Simultaneously, calculate the rebate under Section 87A if eligible. Finally, automatically add Health & Education Cess.

7. Generate Final Form 16 Part B

Once calculations are complete, link the computation sheet to a formatted Form 16 Part B layout. Thus, Excel generates a ready-to-print certificate instantly.

Benefits for Employers and Accountants

Employers benefit immensely from automation. Firstly, they save time. Secondly, they reduce compliance risks. Additionally, they maintain standardised documentation across departments.

Accountants, on the other hand, enjoy simplified reconciliation. Besides that, they can generate multiple Form 16 Part B reports within minutes. Consequently, year-end pressure decreases substantially.

Common Mistakes to Avoid

Although automation simplifies work, errors can still occur. For instance:

• Incorrect PAN entry
• Wrong tax regime selection
• Missing deduction proofs
• Outdated slab rates

Therefore, always verify inputs before finalising Form 16 Part B. Likewise, cross-check TDS deposited figures with official records.

Why Automation Is Essential for FY 2025-26

Tax compliance continues to evolve. Accordingly, manual preparation no longer suffices. Automation ensures speed, accuracy, and transparency. Furthermore, digital records support audit requirements.

As government reporting becomes stricter, automated Form 16 Part B preparation becomes not just helpful but necessary. Hence, businesses must upgrade their systems immediately.

Conclusion

Preparing Automatic Income Tax Form 16 Part B for FY 2025-26 in Excel empowers employers to generate accurate, professional, and compliant salary certificates. Moreover, it enhances efficiency while minimising errors.

By integrating formulas, tax slab automation, deduction validation, and structured formatting, Excel transforms into a complete Form 16 generation tool. Therefore, organisations that adopt automated systems stay ahead in compliance and productivity.

Ultimately, automation saves time, ensures accuracy, strengthens tax reporting, and builds employee trust.

Download and prepare at a time 50 Employees Automatic Income Tax Form 16 Part B for FY 2025-26 in Excel

[caption id="attachment_7197" align="aligncenter" width="928"] Download Automatic Form 16 Part A and B in Excel for Salaried Employees for FY 2025-26 & AY 2026-27[/caption]

Major Highlights of Automatic Form 16 Part B in Excel: An automated Excel sheet offers powerful features. For example:

• Dynamic salary structure integration
• Automatic tax slab selection
• Built-in HRA calculator
• Auto-adjusting deduction limits
• Error-free TDS reconciliation
• Ready-to-print Form 16 Part B format
• Multiple employee processing capability
• Protection against formula editing
• Year-wise tax configuration flexibility

Moreover, the template allows easy modification when tax rules change. Hence, it remains future-ready.

On February 23, 2026 by www.taxexcel.net

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