Section 89 Relief on Arrear Salary: Form 10E Filing Steps Explained
- Received DA/salary arrears from previous years
- Received gratuity, leave encashment, or VRS compensation in lump sum
- Arrear pushed you into higher tax slab this year
- Relief = difference between tax with and without bunching
- 1File Form 10E on Income Tax portal BEFORE filing ITR
- 2Calculate relief using ITD's Table A, B, C, D as applicable
- 3Claim the relief amount in ITR Schedule S-89
- 4Keep acknowledgement of Form 10E — for any future notice
October 2026 mein central government ne DA arrears release kiye — kuch employees ko 3–6 mahine ke arrears ek saath mile hain. Isse is saal ki taxable income badh gayi hai aur tax zyada lag sakta hai. Section 89(1) ke under relief available hai jo is bunching effect ka tax impact kam karta hai — aur iske liye Form 10E ITR se pehle file karna zaroori hai.
Section 89 Relief Kya Hai?
Section 89(1) Income Tax Act ke under, agar aapne kisi pichle year ki salary/allowances is saal receive ki (arrears), toh aap claim kar sakte ho ki tax calculate karo jaise agar woh salary us saal mili hoti jab woh due thi. Agar usi saal tax kam hota, toh difference relief ke roop mein milega.
Simple example:
- FY 2026-27 income: ₹10L (normal) + ₹50,000 (DA arrear from 2024-25)
- Without relief: ₹10.5L pe tax (higher slab)
- With Section 89: Arrear pe tax calculate hota hai jaise 2024-25 mein mila hota — usually lower
- Difference = relief amount
Form 10E: Online Filing Steps
- ITR filing se PEHLE Form 10E file karo — agar ITR pehle file ki aur 10E baad mein, defect notice aa sakta hai
- Income Tax portal: incometax.gov.in pe login karo
- e-File → Income Tax Forms → Form 10E select karo
- Assessment Year: 2026-27 select karo
- Arrear type select karo — Salary/Pension, Gratuity, etc.
- Tables fill karo:
- Table A: Arrear/advance received this year + year it relates to
- Table B/C: Calculation of tax in year of receipt vs year of accrual
- Portal automatically calculates relief — you just verify figures
- Submit Form 10E → get acknowledgement number
- Ab ITR file karo — Schedule under Section 89 mein relief amount mention karo
Relief Kab Available Nahi Hoti
- Agar arrear receive kiya lekin uss previous year ka tax uss saal se zyada hota — toh relief zero ya negative = no benefit (don't claim)
- New tax regime adopters: Check if Section 89 relief applies — computation similar but under new slabs
- Form 10E file na karo agar relief negative hai — unnecessary compliance
DA Arrear Mein Specifically
Same financial year ke DA arrears (July, August, September 2026 ke arrears October mein mile) FY 2026-27 mein hi income hain — previous year ke nahi. Isliye inpe Section 89 applicable nahi hoga.
Section 89 tab applicable hoga jab:
- FY 2025-26 se koi pending salary/increment arrear mila hai FY 2026-27 mein
- Pay revision ke pichle years ke arrears ek saath mile hain
- Court order/settlement se pichle years ki pending salary mili hai
Employer TDS Se Relief
Agar arrear milne pe employer ne already TDS kaat li hai — Form 10E se relief claim karke ITR mein refund claim kar sakte ho. Process same hai — 10E file karo → ITR mein relief claim karo → refund process hoga agar tax paid > actual liability.
Common Mistakes to Avoid
- ITR pehle file karna aur 10E baad mein — system mismatch hoga
- Wrong assessment year select karna in Form 10E
- Employer-issued Form 16 figures se match na karna
- Negative relief claim karna — sirf positive relief claim karein
Know Your Employee Rights
Ask any question about salary, PF, gratuity, leaves, or workplace rights — get instant answers.
Ask Mulazim AI →