Let us briefly look at the provision of “Relief on IT” so permitted on arrears under Sec 89(1) of the IT Act.
Section – 89, Income-tax Act, 1961-2014
B.—Relief for income-tax] 54 [Relief when salary, etc., is paid in arrears.
Where an assessee is in receipt of of salary (Pension) for more than twelve months being paid in arrears in any one financial year, due to which his/her total income is assessed at a rate higher than that at which it would otherwise have been assessed in the past, the Assessing Officer shall, on an application made to him in this regard, grant such relief as may be prescribed. (ABRIDGED).