Answer

1. F

   Facts

   Sec 89 relief applies to salary and family pension received in arrears or advance. Interest paid on delayed arrears is generally income from other sources, not salary, and does not get Sec 89 relief.

2. P

   Provisions and law

   • Sec 89 (now Sec 157)Relief when salary or family pension is received in arrears or in advance
   • Sec 56 (now Sec 92)Income from other sources includes interest
3. A

   Analysis

   If you got ₹5,00,000 of arrears and ₹1,20,000 of interest, put the ₹5,00,000 in salary with Form 10E relief, and the ₹1,20,000 in other sources. Courts have taken different views on interest in some cases, so take advice if the amount is large. Do not include interest in Form 10E.

4. C

   Conclusion

   1. 1Separate arrears and interest using the order or employer statement
   2. 2Report arrears as salary and claim relief
   3. 3Report interest under other sources
   4. 4Keep the court order with your records

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.