Save Tax on Salary Arrears, Tax Relief Calculations u/s. 89(1) of IT

As the arrears of salary relates to 6th pay commission is being received by the employees. When a person/employee receive arrear or any advance in a financial year , he should collect complete information from their employer like as year wise amount of arrear/advance. If you have year wise amount of arrear then you can bifurcate your income year wise. In this way you can save income tax on your income under section 89.

Who is eligible to allow relief u/s 89 (1) Some specified DDO's can allow relief under section 89(1) . List of employers who can allow benefit u/s 89(1), if claimed by employee, is given as under :-

1. company,
2. Co-operative Society
3. Local Authority
4. University,
5. Institution,
6. Association or body
7. Govt State or center
8. Public sector undertaking

Complete detail regarding section 89 is given as under:-

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Calculation Sheet