Section 89 → Section 156
Relief when salary, etc., is paid in arrears or in advance
Quick Answer
Section 89 of the Income Tax Act, 1961 (Relief when salary, etc., is paid in arrears or in advance) corresponds to Section 156 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 89
Provision Summary
Ensures an employee is not taxed at a higher slab rate merely because they received past salary arrears in the current year.
Sec 156
Provision Summary
Retained. Form 10E filing remains the absolute prerequisite for claiming this relief.
Key Changes & Highlights
- Form 10E is entirely digitized and cross-verified automatically with the employer's TDS returns.
Related Sections
Frequently Asked Questions
What does Section 89 of the Income Tax Act 1961 deal with?
Section 89 (Relief when salary, etc., is paid in arrears or in advance) Ensures an employee is not taxed at a higher slab rate merely because they received past salary arrears in the current year.
What is the new section number for Section 89 under the Direct Tax Code 2025?
Section 89 of the ITA 1961 maps to Section 156 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 89 under the new tax code?
Section 89 is marked as "Retained" with status "Active". Impact: High - Essential for government employees and PSU workers receiving pay commission arrears.
What are the key changes to Section 89 under DTC 2025?
Form 10E is entirely digitized and cross-verified automatically with the employer's TDS returns.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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