Under Section 89(1) as per the Income Tax Act 1961: Understanding Income Tax Arrears Relief Calculation U/s 89(1) with Form 10E | Therefore, According to the Income Tax Law, a person must pay taxes on their income earned in a fiscal year. However, there may be cases where an employee has received back or anticipated wages from a prior financial year. In these cases, the employee’s tax liability may increase significantly due to the tax slab rates. To provide relief in such cases, the Income Tax Act 1961 has a provision in Section 89(1).…