Have you received any Salary Income as arrears this year? As per Income Tax Act, salary income pertaining previous years which is received as arrears this year has to be included in the total income. However, the taxpayer has an option to distribute these arrears to relevant years if such distribution is beneficial in the form of tax savings. Section 89 of Income Tax read with Rule 21 A of Income Tax Rules specifies the procedure for calculation of Income Tax Relief in this case.

Income Tax Relief so calculated has to be declared by the employee to Pay drawing authority (DDO) who is responsible for deducting income tax on salary, in the format described under Form 10E.

Download Automatic Excel Based Arrears Relief Calculator U/s 89(1) with Form 10E from the f.Y.2000-01 to F.Y.2016-17