Rebate Under Section89(A)

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.