On 28 Feb 2023, I received ₹ 1,60,959 as Arrears - of - Salary for AY 2020-21. While filing IT Return for AY 2023-24, u/s 89(1) Form - 10E Relief for Arears was System Calculated as NIL. Then what 's the use of this IT Section 89(1)?
Ans: As you must be aware that relief is available only if additional tax liability created due to arrears of income is more than actual tax liability in any past year pertaining to which arrears have been received in the current year, had the full arrears received in the same past year.
Thus, check if you are actually eligible for relief from income tax calculator https://incometaxindia.gov.in/Pages/tools/relief-under-section-89.aspx