Section 89 → Section 156
Relief when salary, etc., is paid in arrears or in advance
Quick Answer
Section 89 of the Income Tax Act, 1961 (Relief when salary, etc., is paid in arrears or in advance) corresponds to Section 156 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 89
Section 89 of the 1961 Act sets out the rules on relief when salary, etc., is paid in arrears or in advance. Ensures an employee is not taxed at a higher slab rate merely because they received past salary arrears in the current year.
From 1st April 2026, the same subject sits at Section 156 of the Income-tax Act, 2025 — retained and renumbered as Section 156 of the Income-tax Act, 2025. Retained. Form 10E filing remains the absolute prerequisite for claiming this relief.
For Section 89, the practical impact is rated High. Essential for government employees and PSU workers receiving pay commission arrears.
Sec 89
Provision Summary
Ensures an employee is not taxed at a higher slab rate merely because they received past salary arrears in the current year.
Sec 156
Provision Summary
Retained. Form 10E filing remains the absolute prerequisite for claiming this relief.
Key Changes & Highlights
- Form 10E is entirely digitized and cross-verified automatically with the employer's TDS returns.
Related Sections
Frequently Asked Questions
What is Section 89 of the Income Tax Act, 1961 about?
Section 89 of the Income Tax Act, 1961 covers relief when salary, etc., is paid in arrears or in advance. Ensures an employee is not taxed at a higher slab rate merely because they received past salary arrears in the current year.
Which section replaces Section 89 in the Income-tax Act, 2025?
Section 89 of the Income Tax Act, 1961 maps to Section 156 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Form 10E filing remains the absolute prerequisite for claiming this relief.
What is the impact of the change to Section 89 under the new tax code?
The transition impact for Section 89 is rated High. Essential for government employees and PSU workers receiving pay commission arrears.
What should I watch out for when Section 89 moves to the 2025 code?
Form 10E is entirely digitized and cross-verified automatically with the employer's TDS returns. These points are specific to Section 89 (Relief when salary, etc., is paid in arrears or in advance).
Disclaimer: This mapping of Section 89 (Relief when salary, etc., is paid in arrears or in advance) to Section 156 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 89 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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