Retired army person income

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Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2017 TAXABILITY OF
ARMY PENSION(UNCOMMUTED),
D.A.ARREAR
OROP ARREAR
7th CPC ARREAR

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 December 2017 Taxable if the pensioner is not a gallantry award holder.

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2017 THANK YOU.
ANY RELIEF u/s 89

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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21 July 2025 Yes, relief under section 89(1) of the Income Tax Act, 1961 is available in your case, particularly for:

✅ Taxability Overview for Retired Army Personnel
Component Taxability Remarks
Uncommuted Pension Taxable Treated as salary income
DA Arrears Taxable Part of salary
OROP Arrears Taxable May qualify for relief u/s 89(1)
7th CPC Arrears Taxable May qualify for relief u/s 89(1)

✅ Relief under Section 89(1) – When Applicable
You can claim relief u/s 89(1) if you received:

Salary/pension/arrears in lump sum, which pertains to earlier years.

Due to such arrears, your tax slab increases in the year of receipt.

👉 This applies to OROP arrears, 7th Pay Commission arrears, and DA arrears if they relate to earlier years.

🛠️ How to Claim Relief Under Section 89(1)
Calculate the tax as if the arrears were received in the respective years to which they pertain.

Compare it with the tax payable in the year of receipt.

The difference is allowed as relief under Section 89(1).

📄 Forms Required
To claim this relief:

You need to file Form 10E online on the Income Tax e-filing portal.

It is mandatory before filing your ITR if you’re claiming u/s 89(1).

📌 Example
If you received ₹2,00,000 as OROP arrears in FY 2023-24, and this amount pertains to FY 2017-18 to FY 2020-21, you can distribute this income in calculations across those years and claim relief accordingly in Form 10E.

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