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How to read section numbers: s.80C→s.123 means Section 80C of the Income-tax Act, 1961 is now Section 123 of the Income-tax Act, 2025 (in force from 1 April 2026). Returns for FY 2025-26 still use the old numbers; Tax Year 2026-27 onwards uses the new ones. Section Finder
How relief is computed
Compute tax this year with and without the arrears; compute tax of the earlier years with and without the arrears. Relief = (extra tax this year) − (extra tax in the earlier years). If the slab rates then were lower, the relief is positive.
Practical points
- File Form 10E on the portal before the ITR; claims without it are denied in processing
- Employers may give relief in TDS if you submit the details
- No relief for arrears of income other than salary-type receipts
Worked example
Example
Example: ₹3 lakh of arrears for FY 2022-23 received in FY 2025-26 pushes income into the 15% slab; spread back, it would have been taxed at 5%. The difference is the relief.
Common mistakes
- Claiming relief without Form 10E
- Not keeping the employer's arrears statement
Frequently asked questions
Yes. It is a relief, not a deduction.
Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.
