Income Tax Relief Under Section 89 is a provision under the Income Tax Act, 1961, designed to help taxpayers who receive salary arrears, advance salary, gratuity, compensation, or pension in a lump sum. When such payments push you into a higher tax bracket, Section 89 ensures you don’t end up paying extra tax just because the income was received all at once.
This relief allows taxpayers to recalculate their tax liability as if the income had been received in the relevant financial years. By doing so, it prevents undue tax burden and ensures fair taxation. To claim this benefit, individuals must submit Form 10E online through the Income Tax Department portal before filing their income tax return.
Section 89 is especially useful for:
Employees receiving salary arrears due to pay revisions
Individuals receiving gratuity or pension arrears
Government or private sector employees who get compensation for job termination
Overall, Relief Under Section 89 provides financial protection by balancing tax obligations and preventing excess taxation on lump-sum income.
Navigate the complexities of income tax relief under Section 89. Find essential information on eligibility and application to enhance your financial well-being! Trending News Fox, News Desk Team, Kolkata Edited by Saibal Bose Income Tax Relief Under Section 89: What You Need to Know Section 89 of the Income Tax Act, 1961, provides relief to…
