The most effective method to CLAIM RELIEF WHEN SALARY IS PAID IN ARREARS OR IN ADVANCE

Whereby any part of assessee's compensation is gotten falling behind financially or ahead of time or by reason of his having gotten in any one money-related year pay for over a year or installment which under the arrangements of area 17(3) is a benefit in lieu of pay, he is subsequently saddled at a higher section than that at which it would somehow or another have been surveyed. The Assessing Officer will, on an Application made to him, give such help as endorsed. The Procedure for registering the help is given in Rule 21. This alleviation is given in the money related year in which such unpaid debts have been gotten.


The Procedure to ascertain the measure of help when pay is paid falling behind financially or ahead of time:-

Stage 1

Most importantly, compute the assessment payable of the earlier year wherein the unfulfilled obligations/advance pay is gotten on


1.Total Income comprehensive of Additional Salary

2.      Total Income selective of Additional Salary


The Difference between 1 and 2 is the duty on extra pay Included in all-out Income.

Stage 2

Presently compute the duty payable of each earlier year to which the extra compensation identifies with

3.      3.The all-out Income including Additional Salary

The Total Income barring Additional Salary

Ascertain the contrast between 4 and 5 for each earlier year to which the extra compensation relates and totals them.

Stage 3

The Admissible Relief will be the Excess between the expense of Additional pay as determined under STEP 1 and STEP 2.


No help if:

•        There is no overabundance between the expense determined on Additional Salary (Step 1 and Step 2)

•        In regard of any sum got or receivable by an assessee on his willful retirement or end of his administration as per any plan, the assessee has guaranteed exception u/s 10(10C) in regard of such remuneration got on deliberate retirement in a similar evaluation year or some other appraisal year.

For the situation where the assessee qualified for help is an administration hireling or a worker in an organization, co-usable society, neighborhood expert, college, affiliation, establishment, he

may outfit the points of interest to his manager who is in charge of making the installment alluded to in area 192(1) in indicated structure 10E.

On account of different representatives, the application for help will be made to the Assessing Officer rather than the Employer

Click here to Download the Automated Income Tax Arrears Relief Calculator with Form 10e U/s 89(1) from the Financial Year 2000-2001 to 2019-20 [ Only for Below 60 Years, Not for Sr.Citizen]