Relief u/s 89(1) available under New Tax Regime ?

842 views 4 replies

Hi 

Pls help me on the following 

  1. Is Section 89(1) relief for salary arrear avaiable under new tax regime ?
  2. Arear relates to FY 2022- 2023 and ITR for that year was filed under old regime.  Current year I opt for new regime. So calculation of relief should be based on old regime only, right ?
Replies (4)

1. Yes

 2. Correct...

@ Honourable dhirajlal rambhia sir , for an example 1 years salary for arrear of Mr x Rs 650000, according section 89 this is fully can get relief next year itr filing


My doubt is how it practically works under section 89

For tax calculator on arrears ....

Refer:: https://cleartaxindia.com/how-to-file-10e-in-the-new-income-tax-portal-with-auto-calculate-income-tax-arrears-relief-calculator-u-s-891-with-form-10e-from-the-f-y-2000-01-to-f-y-2023-24/

Section 89(1) relief is available under both the old and new tax regimes. The critical step is that you must file Form 10E on the income tax portal before you submit your ITR. If you file the ITR first without Form 10E, the department disallows the claim automatically and you get a demand notice. The calculation looks at your tax liability with and without the arrear in the relevant past years and gives you credit for the excess.

Full guide on how to calculate and file Form 10E here: https://taxgarden.in/blog/section-89-tax-relief-salary-arrears-form-10e

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