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Relief on salary arrears — Section 89 (Form 10E)

In short

Received salary arrears, advance salary or a one-off payout that pushed you into a higher slab? Section 89 relief re-spreads it over the years it belongs to, so you don't overpay — claim it via Form 10E.

How it works

The tax on the arrears is recomputed as if received in the years it related to; the difference between the two calculations is your relief, deducted from this year's tax.

How to claim

  • File Form 10E on the e-filing portal before you file your ITR — no 10E, no relief.

Common cases

Pay-commission arrears, gratuity/commuted pension, and leave-encashment received while in service.

The law behind it
Section 89 Rule 21A Form 10E
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General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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