Can relief under Section 89(1) be carried forward?

Short Answer: ❌ No, it cannot be carried forward.

Why?

• Section 89(1) provides relief when you receive arrears or advance salary/pension, causing a higher tax liability in the year of receipt.
• The law requires that this relief must be calculated and claimed in the same financial year when the arrears or advance is received.
• If you miss claiming it, the Income Tax Act does not allow you to claim it in the next year.

Example for Better Understanding:

Imagine you received salary arrears of ₹5 lakh in FY 2022-23 but forgot to claim Section 89(1) relief in your Income Tax Return (ITR). Now, you are filing ITR for FY 2023-24 and want to claim it.

🚫 Not allowed! You must have claimed it in FY 2022-23 ITR, when the arrears were received.

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2️⃣ What Can You Do If You Missed Claiming It?

You have two options, depending on the situation:

✅ Option 1: File a Revised Return (Before the Due Date)

• If the due date for revision has not expired, you can revise your ITR under Section 139(5).
• This allows you to correct mistakes and add relief under Section 89(1).

📌 Example:

• Suppose the last date for revising ITR for FY 2022-23 (AY 2023-24) is 31st December 2024.
• If today’s date is before this deadline, simply revise your return and claim relief.

🔹 How to do it?

1. Log in to the Income Tax e-Filing portal.
2. Select “File Revised Return.”
3. Fill in Form 10E and attach it.
4. Submit the return again.

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✅ Option 2: Apply for Condonation of Delay (Section 119(2)(b))

If the time limit for revision is over, you must request the Income Tax Department to allow a late claim using Section 119(2)(b).

📌 What is Section 119(2)(b)?

• It is a special provision that allows the CBDT (Central Board of Direct Taxes) to grant permission to file a delayed claim for refunds or relief if the taxpayer has a genuine reason for the delay.

📌 Who Can Approve Your Request?
It depends on the amount of refund you are claiming:

Authority	Can Approve If Refund is Up To
Assessing Officer (AO)	₹10 lakh
Principal Chief Commissioner (PCCIT) / Chief Commissioner (CCIT)	₹50 lakh
CBDT (Central Board of Direct Taxes)	More than ₹50 lakh

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✅ How to Apply for Condonation of Delay?

Follow these steps:

1️⃣ Write a Formal Application

• Address it to the Assessing Officer (AO) of your Income Tax Ward.
• Clearly explain why you missed the claim (e.g., oversight, illness, technical issues, employer delay in Form 10E).
• Request the condonation of delay and permission to file a revised ITR.

2️⃣ Attach Necessary Documents

• Form 10E (showing tax relief calculation).
• Copy of original ITR filed for that year.
• Proof of salary arrears (e.g., employer’s salary certificate, pay slips).
• Any supporting document for the delay (e.g., medical reports, employer letter, system failure screenshot).

3️⃣ Submit the Application

• Send it to the Jurisdictional Assessing Officer (AO).
• If the refund amount is above ₹10 lakh, send it to higher authorities (PCCIT/CCIT or CBDT).
• DRAFT APPLICATION FOR CONDONATION OF DELAY UNDER SECTION 119(2)(b)
• To,
• The Assessing Officer,
• [Your Income Tax Ward/Circle],
• [Income Tax Office Address],
• [City, State, PIN]
• Subject: Application for Condonation of Delay in Claiming Relief under Section 89(1) for Salary/Pension Arrears – Assessment Year [XXXX-XX]
• Respected Sir/Madam,
• I, [Your Name], son/daughter of [Father’s Name], PAN [XXXXXXXXXX], residing at [Your Address], respectfully submit this application under Section 119(2)(b) of the Income Tax Act, 1961, requesting condonation of delay in claiming relief under Section 89(1) for arrears received in the financial year [XXXX-XX].
• Details of the Case:
• Assessment Year: [XXXX-XX]
• Financial Year of Arrears Received: [XXXX-XX]
• Amount of Arrears Received: ₹[XXXXXX]
• Tax Relief Under Section 89(1) as per Form 10E: ₹[XXXXXX]
• Reason for Delay:
  • The relief under Section 89(1) was not claimed in the original Income Tax Return due to [mention reason – oversight, illness, system error, delay in Form 10E filing, etc.].
  • Since this relief is a statutory right, I request condonation of delay to enable me to claim the legitimate tax benefit.
• Justification for Condonation:
• The delay in filing the claim was unintentional and due to a genuine hardship.
• If the relief is not granted, it will result in undue hardship and excess tax payment.
• CBDT has issued circulars allowing condonation for genuine cases, and similar reliefs have been granted in past cases.
• Documents Enclosed:
• Copy of Form 10E submission acknowledgment.
• Copy of original ITR filed for AY [XXXX-XX].
• Computation sheet showing tax relief under Section 89(1).
• Supporting documents for the reason of delay (medical certificate/employer letter, etc.).
• Prayer:
• I humbly request you to kindly condone the delay in claiming relief under Section 89(1) and allow me to file a revised return to claim the rightful tax benefit.
• Thank you for your time and consideration.
• Yours sincerely,
• [Your Name]
• PAN: [XXXXXXXXXX]
• Mobile: [XXXXXXXXXX]
• Email: [Your Email]
• Date: [DD/MM/YYYY]
• Place: [Your City]

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✅ Key Points to Remember

✔ The delay must be due to a valid reason, not negligence.
✔ The Income Tax Department has the discretion to accept or reject your request.
✔ If approved, you can file a revised return and claim your tax relief.

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📌 Conclusion: What Should You Do Now?

✅ If the due date for revision has not passed → File a revised return under Section 139(5).
✅ If the due date has passed → Apply for condonation under Section 119(2)(b