Income-tax Act, 1961Section 89
- Relief where salary arrears push income into higher slabs
- Computed by recomputing tax for the earlier years
- Form 10E must be filed before claiming
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 89
SalarySection 89 → Section 157
Relief when salary or family pension is received in arrears or in advance
Section 89 of the old Income-tax Act, 1961 · new section 157 under the Income-tax Act, 2025
New reference Section 157
Income-tax Act, 2025Section 157
- Same relief, now section 157
- Credit for the relief is recognised in self-assessment (section 266)
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered; mechanism unchanged.
Practice notes
- File the Form 10E equivalent online before the return, or the relief will be disallowed at processing.
Frequently asked
What is section 89 relief called in the new Income Tax Act 2025?
Section 157 of the Income-tax Act, 2025.
What is section 89 called in the new Income-tax Act, 2025?
Section 89 of the Income-tax Act, 1961 corresponds to Section 157 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 89 under the new Income Tax Act?
Renumbered; mechanism unchanged.
Is section 89 still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 89 of the 1961 Act. Section 157 of the 2025 Act applies from tax year 2026-27.