Income Tax
Section 89 Relief — Meaning
Relief from extra tax when salary arrears or advance salary push income into a higher slab.
What is Section 89 Relief?
When salary arrears or advance salary are received in one year, Section 89 relief recomputes tax as if the income had been received in the years it relates to, and gives the difference as relief. It applies to arrears, advance salary, gratuity and certain other lump sums. Form 10E must be filed online before claiming the relief in the ITR, or the claim is disallowed.
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Related terms
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).
