Central and State govt employees pay were revised in recent past on account of Sixth Pay Commission . So all govt. staff received lots of arrear payments for which now they are going to file return of Income . Naturally , one of the central concern among them is whether any relief from high tax on account arrear payments they received during FY 2009-10 are available. Yes, they can claim relief from tax on arrears received as per section u/s 89(1) of the I .T. Act. Read below