Section 89 relief on Advance salary

Hi Everyone,

I need help in filing form 10E for claiming relief under Section 89 in case of advance salary. Everywhere I see tax computation for arrears of salary but I believe we can claim relief on Advance salary too, since form 10E only mentions arrears and advance salary. Please help me in computing relief.

Thanks in advance

Replies (5)
Quick Summary
This discussion explores the possibility of claiming tax relief under Section 89 for advance salary payments. While Form 10E mentions both arrears and advance salary, contributors debate whether relief is genuinely applicable to advance payments. Some suggest it's taxable in the current year on receipt, with no specific relief mechanism like that for arrears, while others point to potential calculation methods involving disclosing future income and comparing tax rates.

As per my view how can one get tax relief on advance salary, if we go as per section 89 and calculate relief as per steps mentioned in 89 then also I think no relief will come. this is my opinion wait for other experts too .

We can't calculate relief like we do for arrears of salary but we can only disclose the income of future years received now and calculate tax for current year's income

I think there will be no relief u/s 89 for advanced salary, instead it will be taxed in current year on receipt basis even though it is not accrued
If you read section 21(A)1 it will give you an idea
as per my interpretation you are required to calculate as per existing tax rate first then recalculate the actual tax as per the new new tax rate declaration now you get a difference and that should be either payable or refundable
but I will say there's lots of theory regarding this but in partical nothing is there in relief in advance tax yet
Rule 89 relief is for arrear not for advance and salary is always taxable on the basis of receipt or due which ever is early so advance salary is taxable in the current year and deduct from next year due salary.

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