Rebate Under Section89(A)

If an employee's LTC for block year 2024-27 is sectioned in FY 2024-25 but the amount is received in FY 2025-26, can he avail rebate under Section 89(A) in FY 2025-26?

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The employee can avail rebate under Section 89(A) in FY 2025-26 if the LTC amount received in FY 2025-26 results in a higher tax liability due to the amount being taxed in a year different from when it was sanctioned. The relief under SEction 89(A) is aimed at mitigating the impact of taxing the LTC in a different year than when it was accrued. 

To claim this rebate, the employee would typically need to file a declaration and provide necessary details to their employer or during tax filing, showing how the tax liability is affected due to the timing of LTC receipt.

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