CA Srikant Agarwal

RELIEF UNDER SECTION 89

Where by reason of any portion of an assessee’s salary being paid in arrears or in advance or by reason of his having received in any one financial year, salary for more than twelve months or a payment of profit in lieu of salary under section 17(3), his income is assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer shall, on an application made to him in this behalf, grant such relief as prescribed. The procedure for computing the relief is given in rule 21A. This relief is called relief u/s 89(1).

We have uploaded Calculator to calculate relief Under section 89(1) of the Income Tax Act, 1961 in respect of Arrears of salary received during the financial year 2013-14 or any of the prior years.

This will support the arrears received for last 5 financial years and support the income of financial year 2006-07 to 2013-14.

Download Calculator for Income Tax Relief  U/s. 89(1) – F.Y. 2013-14

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25 responses to “Income Tax Relief U/s. 89(1) with Calculator for F.Y. 2013-14”

  1. K.Gurusamy says:

    Sir can you tell me relief u/s 89(1) for arrears of rs.49019 for AY 2017-18

  2. Naresh Kumar says:

    Sir, I have taken Voluntary Retirement for a PSU Bank on 30-11-2015. TDS has been deducted on my total income including Arrears received in July 2015.

    Now I want to avail relief under Sec 89(1) for the arrears of previous 3 years. My doubts are –
    1. Whether I can claim relief for arrears received in July 2015 in view of the fact that I took retirement on 30-11-2015
    2. To whom shall I submit the Form 10E because full Tax has been deducted by the employer on my salary till 30-11-2015 including arrears as well as retirement benefits.
    3. can I claim Relief under Sec 89(1) while filing my Return directly and can adjust the same against Tax payable on my Pension for the remaining months of this year ( from 01-12-2015 to 31-03-2016)

  3. SAPKAL B A says:

    Sir i am recd arrears 2013 -2015 Rs 311208 please advise whether revised returns of previous assessment years is required to be filed for claiming relief under section 89 – See more at:

  4. tapan says:

    Sir i have filled rebate u/s 89(1) in income tax return 2015-16, but in demand notice raised by IT cpc they are not considering same pls advise what to do – See more at: https://taxguru.in/income-tax/income-tax-relief-section-891-calculator-fy-201314.html#sthash.lJJNKHgo.dpuf

  5. yash pal says:

    please advise whether revised returns of previous assessment years is required to be filed for claiming relief under section 89

  6. Name says:

    i had prepared form 10e also and submitted to my employer

  7. Name says:

    Sir i have filled rebate u/s 89(1) in income tax return 2015-16, but in demand notice raised by IT cpc they are not considering same pls advise what to do

  8. Manoj Jha says:

    My salary for August 2014 to November 2014 was paid in April 2015, in which financial year i have to take this income?

  9. Prof. N. Manohara Murthy says:

    ipul says:
    07/22/2014 at 1:09 PM

    sir
    I have a query. An amount of Rs 30940, Rs 42102, Rs 5273(total 78315) were recovered from my salary as a result of some discrepancy in pay fixation relevant to FY 2009-10,10-11,11-12 respectively. An arrear of RS 461890 was also due to me because of my promotion relevant to FY 2011-12,12-13. My employer has paid me Rs 383575 i.e.461890-78315 in FY 2013-14.I want to ask you that for arrears I can claim relief under section 89 but how can I claim benefit for recovery of salary for which I have already paid tax in relevant FY
    – See more at: https://taxguru.in/income-tax/income-tax-relief-section-891-calculator-fy-201314.html#sthash.1j1ZO0UK.dpuf

    Dear Sir
    I too have the same problem. An amount of Rs.33300/- has been recovered from my pension which was paid to me erroneously at the rate of Rs.900/- per month from 01-01-2002 to 31-01-2005 when I was in service.During this period I paid Tax at the slab rate of 30%.
    Please let me know how the refund can be obtained for the excess Tax paid.
    Yours sincerely
    N. MANOHARA MURTHY

  10. Vijay G says:

    Salary not paid by employer for last 8 months. Since salary is taxable on accrual basis return filed with entire salary income and TDS deducted by employer. TDS deducted not paid by employer to govt thus not reflecting in 26AS. Now CPC is asking me to pay differential tax amount. What remedy is available, please suggest. Thanks in advance.

  11. SOURABH JAIN says:

    DEAR TEAM,
    i have Rec ivied 1 LACK RS ADDITIONAL AMOUNT as a arrears IN FINANCIAL YEAR OF 2014-2015,kindly confirm the calculation tax charges on this amount.
    arrears amount rec ivied for the year of 2001 to 2008

  12. KIRAN P BHANDARKAR says:

    dear sir how much f.y. arreares salary calulated for u/s 89(1) if f y 2013-14
    i have received arrears from f.y 1997 to 2001 i take relief the same above section ple
    can i calculate relief

  13. jOSEPH says:

    I havent received any amount as salary during 2013-14 and hence no tax has been paid during this FY. The 2013-14 salary has been disbursed as arrear salary during the FY 2014-15. I have prepared income tax relief U/s 89(1). But my question is that How I will include LIC & other deductions which are to be effected during the FY 2013-14 .

  14. L.R.RANA says:

    Is there 10% rebate on arrears.

  15. Vahini M says:

    I got a notice us 143(1) in AY 14-15 it demand a tax. In this they do not give me the rebate us 89(1), due to this the tax demand generated.
    My employer give me the rebate us 89(1) and show it in form 16 provided by the employer.
    what should i do now?

  16. SANJAY says:

    I get a notice us 143(1) in AY 14-15 it demand a tax. In this they do not give me the rebate us 89(1), due to this the tax demand generated.
    My employer give me the rebate us 89(1) and show it in form 16 provided by the employer.
    what should i do now?
    Please help?

  17. MAHENDRA KR SHARMA says:

    I get a notice us 143(1) in AY 14-15 it demand a tax. In this they do not give me the rebate us 89(1), due to this the tax demand generated.
    My employer give me the rebate us 89(1) and show it in form 16 provided by the employer.
    what should i do now?
    Please help?

  18. Suresh says:

    Like mr. vipul even i have the same prob………….some one help please

    I have a query. An amount of Rs 30940, Rs 42102, Rs 5273(total 78315) were recovered from my salary as a result of some discrepancy in pay fixation relevant to FY 2009-10,10-11,11-12 respectively. An arrear of RS 461890 was also due to me because of my promotion relevant to FY 2011-12,12-13. My employer has paid me Rs 383575 i.e.461890-78315 in FY 2013-14.I want to ask you that for arrears I can claim relief under section 89 but how can I claim benefit for recovery of salary for which I have already paid tax in relevant FY

  19. B K Agnihotri says:

    It is Very helpful tool.
    thanks

  20. CHETAN SHAH says:

    Sir,

    Form 10 E prepare or not prepare

  21. anbalagan says:

    Form 10Eto claim rebateU/S 89(1)

  22. anbalagan says:

    Form No 10E

  23. vipul says:

    sir
    I have a query. An amount of Rs 30940, Rs 42102, Rs 5273(total 78315) were recovered from my salary as a result of some discrepancy in pay fixation relevant to FY 2009-10,10-11,11-12 respectively. An arrear of RS 461890 was also due to me because of my promotion relevant to FY 2011-12,12-13. My employer has paid me Rs 383575 i.e.461890-78315 in FY 2013-14.I want to ask you that for arrears I can claim relief under section 89 but how can I claim benefit for recovery of salary for which I have already paid tax in relevant FY

  24. Neeraj says:

    Thanks for the tool..

    My company has provided me 10E calculations and relief under section 89(1) but the total income i.e (A. Total income for above Previous year / Financial Year without considering additional salary) does not include the income from other sources such as bank interest rate for Financial year. Can I include that now and recalculate relief under section 89(1) as due to Arrears my salary has increased from say 8.5L to 10.5L and any further additions to income from other sources now shall be attracting 30% interest which if would have included before adding Arrears would have resulted in 10% more relief.

    Can I recalculate relief now myself with salary + income from other sources before filing return and put a new relief in ITR ?

    I hope you understood the issue.

  25. Rajesh Khemesra says:

    nice tools

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