Answer

1. F

   Facts

   Yes. Sec 89 relief is a relief from tax, not a deduction that the new regime takes away. You can claim it whichever regime you choose, if you file Form 10E.

2. P

   Provisions and law

   • Sec 89 (now Sec 157)Relief when salary or family pension is received in arrears or in advance
   • Sec 115BAC (now Sec 202)New tax regime
3. A

   Analysis

   Many people assume the new regime blocks all reliefs; it blocks most deductions and exemptions, but Sec 89 relief stays. With lower new regime rates, relief may be smaller or nil, so compute it. For example, a government employee getting ₹1,50,000 of DA arrears may still get relief if earlier years were taxed at 20% under the old regime and this year is mostly at 15% or less.

4. C

   Conclusion

   1. 1Choose your regime for the year
   2. 2Compute relief in Form 10E
   3. 3File Form 10E before the ITR
   4. 4Claim the relief in the ITR

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