Section 157
Section 157: relief when salary is paid in arrears or advance
Section 157 is the relief provision for a common problem: receiving several years' worth of salary-type income in one tax year (arrears, or an advance) can push a taxpayer's income into a higher slab than they would have faced had the amount been taxed in the years it actually related to. This section lets the Assessing Officer grant relief to smooth that out.
When relief is available
Relief is available where an assessee's total income gets assessed at a higher rate because of any of the following receipts:
- A sum in the nature of arrear or advance salary
- Salary for more than twelve months received in a single tax year
- A payment in the nature of "profits in lieu of salary" under Section 18(1)
- Arrears of "family pension" as defined in Section 93(1)(d)
How to claim it
The Assessing Officer grants the relief on an application made by the assessee, in the manner prescribed - it is not automatic and must be actively claimed.
A condition worth noting
No relief is granted on income for which a deduction has already been claimed under Section 19(1) (Table Sl. No. 12) - the relief and that specific deduction are mutually exclusive for the same amount.
Frequently asked questions
Is this the same as the relief people call "Section 89(1)" under the old Act?
It serves the same purpose - relief for arrears or advance salary pushing you into a higher tax bracket - but it is Section 157 under the Income-tax Act, 2025.
Do I automatically get this relief when I receive salary arrears?
No - you must apply to the Assessing Officer for it in the prescribed manner; it isn't applied automatically just because arrears were received.
Does this cover family pension arrears too?
Yes - arrears of family pension as defined in Section 93(1)(d) are specifically covered alongside salary arrears, advance salary, and profits in lieu of salary.
Related sections
Want this applied to your actual filing, not just explained?
Check if you're eligible for Section 157 reliefLast updated 9 September 2026