The relief on salary received in arrears or in advance is computed in the manner laid down 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 above (1) and (2);

4- Compute the tax on the total income after excluding the additional salary in the previous to which such salary relates;

5- Compute the tax on the total income after including 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) is the amount of relief admissible under section 89(1). No relief is, however, admissible if the tax computed at (3) is less than the tax computed at (6). In such scenario, the taxpayer need not apply for relief.