Whenever a person receives salary in arrears or in advance (which may be called as additional salary) he can claim the relief which is made available in Section 89(1) of the Income Tax Act, 1961. The relief is computed in the manner as provided in rule as under:- 1) Calculate the tax payable on the total income, including the additional salary of the relevant previous year in which the same is received. 2) Calculate the tax payable on the total income, excluding the additional salary of the relevant previous year in which the same is received. 3) Find out the difference between the tax at (1) and (2) 4) Compute the tax on the total income after excluding the additional salary in the previous year to which such salary relates. 5) Compute the tax on the total income after including the additional salary in the previous year to which such salary relates. 6) Find out the difference between the tax at (4) and (5) 7) The excess of tax computed at (3) over the tax computed at (6) will be the amount of relief admissible under section 89(1) 8) No relief is however admissible if the tax computed at (3) is less than the tax computed at (6). In such a case, the assessee- employee need not apply for relief. Tax Returns for Financial Year 2010 -11 (March 2011) has started. Request you to please visit Taxmantra.com or mail us Form16/ Salary Certificate and details of other income, at info@taxmantra.com . We would take it from there to file your return of income. Taxmantra.com provides complete online taxation solutions for individuals ( Tax Returns + Tax Support + Tax Planning ) – please see this – Services Offered. Taxmantra.com- Providing Complete Online Tax Solutions for Individuals, Not Just Returns.