Find
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.
ITR
Interest received on delayed arrears
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Provisions
Sec 89 (now Sec 157); Sec 56 (now Sec 92)
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.
Close
- Separate arrears and interest using the order or employer statement
- Report arrears as salary and claim relief
- Report interest under other sources
- Keep the court order with your records
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