Calculation Of Relief Under section 89(1) in case of Adhoc Arrear Received

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This discussion addresses how a bank employee can claim relief under Section 89(1) for ad-hoc salary arrears received in FY 2020-2021 but to be credited in FY 2021-2022. Guidance is sought on whether to deduct the ad-hoc amount before calculating relief and how to handle the tax implications if the arrears were received in a previous financial year. The consensus suggests claiming relief in the subsequent year once full details are available, and paying tax on the current year's income without deducting the ad-hoc arrears initially.

Amit

Amit (Querist)
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10 September 2021 If a Bank Employee has received arrears of salary on an ad-hoc basis related to past years in A.Y. 2020-2021. The full amount is yet to be calculated by Bank which they will credit in the A.Y.2021-2022 only. Now the bank has not mentioned the AY/PY related to which the ad-hoc amount has been paid .
Kindly guide how can I claim sec 89 relief in the above scenario in A.Y.2021-22
Whether We has to Taken Arrear Amount After Deduction Ad-hoc Arrear or Without deducting Ad-hoc Arrear.