§ 157
Chapter IX — Rebates And Reliefs

Relief when salary, etc., is paid in arrears or in advance

Income-tax Act, 2025

Business owners may be eligible for tax relief if their income is assessed at a higher rate due to receipt of arrear or advance salary, or other specific payments. This relief can be claimed by applying to the Assessing Officer. The relief is subject to certain conditions, including

  • not having claimed a deduction under section 19(1) for the same income
. The goal of this relief is to mitigate the impact of higher tax rates on income received in arrears or advance.

📜 Official text of the section +
157. (1) Where the total income of an assessee is assessed at a rate higher than the rate at which it would otherwise have been assessed, due to the following receipts,— ( a) a sum in the nature of arrear or advance salary; or ( b) salary for more than twelve months in any one tax year; or ( c) a payment in the nature of “profits in lieu of salary” under section 18(1); or ( d) arrears of “family pension” as defined in section 93(1)(d), the Assessing Officer shall on an application made to him by the assessee in this behalf, grant such relief, as may be prescribed. (2) No relief shall be granted on any income on which deduction has been claimed by the assessee in section 19(1)(Table: Sl. No. 12) for any amount mentioned therein, for such, or any other, tax year. Relief from taxation in income from retirement benefit account maintained in a notified country.

Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.