Relief under Section 89(1) Calculator

Calculate tax relief on salary arrears and other lump sum receipts using Form 10E.

Calculate Relief

Previous Years (Spread Arrears)

Enter tax calculated by adding portion of arrears to respective years' income

Section 89 Relief

Enter details to calculate relief amount.

How Section 89 Relief Works

Relief = Tax on Total Income (with arrears) - Tax on Total Income (without arrears) - Sum of Additional Tax in Previous Years If Relief > 0, you get tax benefit If Relief ≤ 0, no relief available

Calculation Steps

  1. Calculate tax on total income including arrears (current year)
  2. Calculate tax on income excluding arrears (current year)
  3. Spread arrears to respective years they relate to
  4. Calculate additional tax for each previous year
  5. Relief = Step 1 - Step 2 - Sum of Step 4

Form 10E

You must file Form 10E online before filing ITR to claim Section 89 relief. Without Form 10E, relief cannot be claimed.

FAQs

Section 89(1) provides relief when you receive salary arrears or other lump sum payments that relate to earlier years. It ensures you're not pushed into a higher tax bracket unfairly.

Yes, Form 10E must be filed online on the e-Filing portal before filing your ITR. Without it, you cannot claim Section 89 relief.

Salary arrears, advance salary, gratuity, commuted pension, PF compensation, and other lump sum receipts relating to earlier years qualify.

If calculated relief is negative, it means no relief is available. You cannot claim negative relief - minimum is zero.

⚠️ Disclaimer: Use IT Dept's utility for accurate 10E. This is for understanding only.