Pranab Banerjee
Quick Summary
Taxpayers often face a higher tax burden when they receive salary arrears or advance payments in a single financial year. Consequently, this lump-sum income can push an individual into a higher tax bracket than intended. To address this, the Income Tax Act provides a specific mechanism for relief un
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FAQ :
Form 39 is the new form introduced for FY 2026-27 to claim tax relief on salary arrears or advance payments. It replaces the previous Form 10E.
The purpose is to prevent a higher tax burden caused by receiving salary arrears or advance payments as a lump sum in a single financial year, which can push you into a higher tax bracket.
The relief is calculated by spreading the arrears back to the years they actually belong to. This involves comparing the tax paid in the current year with the arrears to the tax that would have been paid in the past years without the arrears.
You must file Form 39 online before submitting your Income Tax Return (ITR). Accurate data matching your filed tax statements for previous years is crucial, and the form must be e-verified.
You will need a year-wise breakup of salary arrears from your employer, new TDS certificates (Form 130/131), and your previous years' Income Tax Returns (ITRs) to ensure accurate data entry.
Form 39 must be filed online before you submit your Income Tax Return (ITR) for FY 2026-27.
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