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Salary arrears relief calculator

Received salary or family pension arrears in one go and paid more tax because of it? Enter your figures to see how much of that extra tax you can claim back, with a year-by-year working you can copy into Form 39 or Form 10E.

Updated for the Income-tax Act, 2025

The year you received the arrears

This decides which law, section and form apply.

₹

The years the arrears relate to

Use the year-wise break-up from your employer's arrears statement. Add one row per year.

Total arrears received₹0

Your relief

Relief you can claim₹0

Enter your income and arrears above to see the result.

    Arrear years (Table A working)
    YearTaxable income as assessedArrears for the yearIncome with arrearsTax without arrearsTax with arrearsDifference
    Total extra tax had arrears been paid on time₹0

    Tax figures include health and education cess (education cess of 3% up to FY 2017-18) and the rebate for each year, with marginal relief on the new regime rebate where it applies. Surcharge is not included.

    How the relief works

    Arrears are taxed in the year you receive them. A large lump sum can push you into a higher slab than you would have been in if the money had arrived on time. The relief puts you back where you would have been.

    The calculation compares two amounts. The first is the extra tax the arrears cause in the year you receive them. The second is the extra tax the same arrears would have caused if each portion had been taxed in the year it belonged to, at that year's slabs. If the first is higher, the gap is your relief. If it is lower or equal, the relief is nil.

    Worked example

    Priya is on the old regime. In FY 2025-26 her taxable income is ₹9,00,000 and she receives ₹3,00,000 of arrears, split equally between FY 2021-22 and FY 2022-23. In both of those years her taxable income was ₹6,00,000.

    Tax on ₹12,00,000 in FY 2025-26 is ₹1,79,400, against ₹96,200 on ₹9,00,000, so the arrears cost her ₹83,200. Had each ₹1,50,000 been paid on time, it would have added ₹31,200 of tax in each year, or ₹62,400 in total. Her relief is ₹83,200 less ₹62,400, which is ₹20,800.

    Which section and form apply

    The Income-tax Act, 2025 came into force on 1 April 2026. The relief itself works the same way, but the section and form depend on when you received the arrears.

    Arrears received in FY 2025-26

    Section 89(1) of the 1961 Act, read with Rule 21A. File Form 10E on the e-filing portal before filing your return for AY 2026-27.

    Arrears received from Tax Year 2026-27

    Section 157(1) of the 2025 Act, read with Rule 73. File Form 39 on the e-filing portal on or before the due date of your return.

    Common questions

    Can I claim this relief under the new tax regime?

    Yes. The relief is available under both regimes. Each year in the working uses the regime you actually followed in that year, which is why the calculator asks for a regime per year.

    What happens if I claim relief in my return without filing the form?

    The claim is usually disallowed when your return is processed. File Form 39 or Form 10E first, then claim the same relief amount in your return.

    Can I change Form 39 after submitting it?

    The department's guidance says a submitted Form 39 cannot be edited, so check the year-wise figures against your employer's arrears statement before you submit.

    Can my employer give me the relief through TDS?

    Yes. Employees of the government, companies, co-operative societies and similar bodies can give the particulars in Form 39 to their employer, who can account for the relief while deducting tax.

    Does this cover gratuity, commuted pension or retrenchment compensation?

    No. These receipts use different formulas under the same rule. This calculator covers arrears of salary and family pension only.

    What does "taxable income as assessed" mean for an earlier year?

    It is the total income on which you were taxed for that year, after deductions, as shown in your return or the processing intimation. Do not include the arrears.

    What this calculator does not cover

    • Surcharge, which applies when total income exceeds ₹50 lakh.
    • Income taxed at special rates, such as capital gains, which can change how the rebate applies.
    • Advance salary, gratuity, commuted pension and compensation on termination.
    • Non-residents and taxpayers other than individuals.

    This calculator gives an estimate for guidance. Check your figures against your employer's arrears statement and with a chartered accountant before filing. Slab rates, rebates and cess are applied as notified for each year from FY 2015-16 to Tax Year 2026-27. Last updated 22 September 2026.