Answer

1. F

   Facts

   Relief can be nil if your tax rate in the earlier years was the same or higher than in the year of receipt. This often happens when rates have come down in the new regime or your income was already high earlier.

2. P

   Provisions and law

   • Sec 89 (now Sec 157)Relief when salary or family pension is received in arrears or in advance
   • Rule 21A, Income-tax Rules 1962Manner of computing Sec 89 relief and Form 10E
3. A

   Analysis

   If you were in the 30% slab in FY 2022-23 and are in the 20% band now under the new regime, arrears cost less to tax now, so relief is nil. Nil relief is not a penalty; it just means no benefit. You do not need to claim relief in the ITR in that case, though filing Form 10E for the record does no harm.

4. C

   Conclusion

   1. 1Check each year's slab and regime
   2. 2Confirm the arithmetic in Annexure I
   3. 3Accept nil relief if earlier rates were not lower
   4. 4Do not claim relief in the ITR if nil

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