Section 89 Relief Calculator
Relief on arrears that would have been taxed less in their own year.
Regime this year (2026-27)
Regime used in that year
Your result
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Enter your numbers to see the result.
This section 89 relief calculator works out the tax relief you can claim when you receive salary or pension arrears this year that relate to an earlier year. Arrears can push you into a higher slab this year; relief adjusts for the tax you would have paid if they had been received on time. Enter your income this year and in the arrears year, with the regime for each, and it shows the relief to claim in Form 10E.
What is a Section 89 Relief Calculator?
When you receive salary or pension arrears this year for work done in an earlier year, the whole amount is taxed this year. That can push you into a higher slab and make you pay more tax than if you had been paid on time. Relief under section 89(1) (as numbered in the 1961 Act) fixes this.
You calculate the extra tax caused by the arrears this year, and the extra tax they would have caused in the year they belong to. If this year’s extra tax is higher, the difference is your relief. You must file Form 10E online before claiming it in your return. This section 89 relief calculator does the working for one arrears year.
How does the Section 89 Relief Calculator work?
The calculator computes tax this year with and without the arrears, using Tax Year 2026-27 rates. It then computes tax for the arrears year with and without the arrears, using that year’s slabs and rebate for the regime you chose. The relief is the difference between the two extra-tax figures.
How to use the Section 89 Relief Calculator step by step
- Enter this year’s taxable income without arrears and the regime.
- Enter the arrears amount.
- Choose the year the arrears relate to.
- Enter that year’s taxable income and regime.
- Read the relief.
- File Form 10E on the e-filing portal, then claim the relief in your return.
Section 89 Relief Calculator example with real numbers
A pay revision gives you ₹2 lakh of arrears this year for FY 2024-25. Your taxable income this year is ₹13.5 lakh, and in FY 2024-25 it was ₹9.5 lakh, both under the new regime.
| Example input | Value |
|---|---|
| Taxable income this year | ₹13,50,000 (new regime) |
| Arrears | ₹2,00,000 for FY 2024-25 |
| Taxable income in FY 2024-25 | ₹9,50,000 (new regime) |
| Example output | Value |
|---|---|
| Relief you can claim | ₹2,600 |
| Tax this year with arrears | ₹1,17,000 |
| Tax this year without arrears | ₹85,800 |
| Extra tax this year due to arrears | ₹31,200 |
| Tax in that year with arrears | ₹75,400 |
| Tax in that year without arrears | ₹46,800 |
| Extra tax if received on time | ₹28,600 |
The arrears add ₹31,200 to this year’s tax but would have added only ₹28,600 in FY 2024-25. The section 89 relief calculator shows relief of ₹2,600, which you claim by filing Form 10E.
Key features of this Section 89 Relief Calculator
- Built-in slabs for FY 2023-24 to Tax Year 2026-27
- Old and new regime for each year
- Form 10E-style working
- Rebate handled
- Clear claim steps
Who should use the Section 89 Relief Calculator?
Who is this Section 89 Relief Calculator for?
- Employees receiving pay revision arrears
- Pensioners receiving DR or pension arrears
- Government employees after DA or pay commission changes
- Tax preparers
Practical use cases
- Claiming relief on DA arrears
- Checking whether relief is worth claiming
- Preparing Form 10E
- Responding to a tax notice about relief
Key benefits
- Saves tax: avoid paying extra due to timing.
- Multi-year slabs: no need to look them up.
- Form-ready: step-by-step working.
- Private: nothing uploaded.
Tips for better results
- File Form 10E before filing your return; claiming relief without it can lead to a notice.
- If arrears relate to several years, split them and repeat for each year.
- Use the income actually assessed in the earlier year.
- Keep your employer’s arrears statement.
Common mistakes to avoid
- Claiming relief without filing Form 10E.
- Using the wrong year’s slabs.
- Ignoring the regime used in the earlier year.
- Expecting relief when arrears don’t change your slab.
Limitations of this Section 89 Relief Calculator
- Surcharge and marginal relief on surcharge are not included.
- One arrears year at a time.
- Special incomes taxed at fixed rates are not covered.
Section 89 Relief Calculator vs other ways to calculate
| Year | New regime basic exemption | Rebate up to |
|---|---|---|
| FY 2023-24 | ₹3 lakh | ₹7 lakh |
| FY 2024-25 | ₹3 lakh | ₹7 lakh |
| FY 2025-26 | ₹4 lakh | ₹12 lakh |
| Tax Year 2026-27 | ₹4 lakh | ₹12 lakh |
For DA arrears amounts, use the DA calculator. For this year’s tax, see the income tax calculator.
Privacy and data handling
This Section 89 Relief Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Section 89 Relief Calculator FAQs
What is relief under section 89?
Relief from extra tax when salary or pension arrears for earlier years are received in the current year.
Is Form 10E mandatory?
Yes. You must file Form 10E online before claiming the relief in your return.
How is section 89 relief calculated?
Compare the extra tax caused by arrears this year with the extra tax they would have caused in the year they relate to. The difference, if positive, is the relief.
Can I claim relief under the new regime?
Yes, relief is available whichever regime you choose, but you must use each year’s correct slabs.
Do pensioners get relief on arrears?
Yes, pension arrears also qualify.
What if arrears relate to several years?
Split the arrears by year, work out the extra tax for each year, and add them up.
Related tools
Sources and references
We checked the method and the current figures used in this Section 89 Relief Calculator against these official and primary sources:
Written and reviewed by the Qorico Team
