Form 39 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Form 39 is the form for claiming relief under section 157(1) of the Income-tax Act, 2025 where an assessee receives additional salary, gratuity, retrenchment compensation or commutation of pension and is taxed at a higher rate because of the receipt. It is prescribed by rule 73. This article describes the form as printed, as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked.
The assessee files Form 39 under rule 73 to claim relief under section 157(1). Part A gives the assessee's details and the relevant tax year. Part B works out relief in separate blocks for additional salary or family pension, gratuity (past services under 15 years and 15 years or more), retrenchment compensation and commutation of pension, collects them in a summary at row 8, and totals the relief at row 9. The assessee affirms the form in a short verification.
The rule and the section
Rule 73 deals with relief under section 157(1) when salary is paid in arrears or in advance, and with gratuity and similar receipts; it sets the manner of relief for each kind of receipt in a Table, and the form is where the claim is made. See rule 73 and the relief in Form 39. Section 157 gives the relief where the receipts cause the total income to be assessed at a higher rate; the section is explained in section 157 on relief for salary arrears. Under rule 73(3) the assessee furnishes the particulars in Form 39 on or before the due date specified under section 263(1)(c); under rule 73(4) a Government servant or an employee of a company, co-operative society, local authority, university, institution, association or body may furnish them to the person responsible for making the payment referred to in section 392(1). For any other receipt, rule 73(2) lets the Board allow such relief as it deems fit. This article reproduces only the rows of the form. If you want the computation checked, our income tax return filing team can review the claim alongside your return.
The form is headed "Form for claiming relief under section 157(1) of the Act in case of receipt of additional salary, or gratuity or Retrenchment Compensation or commutation of pension" with the reference "".
Part A: Basic information
| Row | Particular |
|---|---|
| 1 | Details of the assessee: (i) name, (ii) address, (iii) Permanent Account Number, (iv) residential status, (v) email ID, (vi) contact number |
| 2 | Tax year (the relevant tax year as in rule 73) |
Part B: Relief rows 3 to 9
Part B is organised by kind of receipt.
Row 3: additional salary (arrears or advance) or additional family pension
| Sub-row | What is entered |
|---|---|
| 3(i) | Attribution of the additional salary or family pension to the tax year to which it relates. A table with columns A to G: tax year(s) to which it relates; amount relating to that tax year (B); total income of that tax year (C); tax payable on total income (D); enhanced total income (E = B + C); tax payable on enhanced total income (F); tax chargeable on the additional salary if it was received in that tax year (G = F - D). Lines (a) to (d), repeated if required, with totals of B and of G |
| 3(ii) to 3(vi) | Total income of the relevant tax year; tax payable on it; reduced total income (row 3(ii) less the total of column B); tax payable on the reduced total income; tax on the additional salary in the relevant tax year, being the year of receipt (row 3(iii) less row 3(v)) |
| 3(vii) | Whether the tax in row 3(vi) is greater than the total of column G of row 3(i) (1. Yes, 2. No) |
| 3(viii) | Relief admissible only when 3(vii) is Yes: row 3(vi) less the total of column G |
Rows 4 to 7: gratuity, retrenchment compensation and commutation of pension
Rows 4 to 7 follow one pattern. Each takes the receipt in the relevant tax year (called Y1 for that row), computes an average rate of tax on enhanced total income for earlier years, compares it with the average rate for Y1, and gives the relief only if the Y1 rate is higher.
| Row | Receipt | Earlier years used | Enhanced total income (column C) |
|---|---|---|---|
| 4 | Gratuity (past services under 15 years) | Y2 and Y3, the two tax years immediately before Y1 | Total income + one-half of the receipt in 4(i) |
| 5 | Gratuity (past services of 15 years or more) | Y2, Y3 and Y4 | Total income + one-third of the receipt in 5(i) |
| 6 | Retrenchment compensation | Y2, Y3 and Y4 | Total income + one-third of the receipt in 6(i) |
| 7 | Commutation of pension | Y2, Y3 and Y4 | Total income + one-third of the receipt in 7(i) |
In each of rows 4 to 7 the sub-rows run the same way:
| Sub-row | Particular |
|---|---|
| (i) | Amount of the receipt in the relevant tax year (Y1) |
| (ii) | Table for the earlier years: tax year; total income (B); enhanced total income (C); tax payable on enhanced total income (D); average rate of tax on enhanced total income (E = D / C); with a total of column E |
| (iii) | Average of the average rates (RA): one-half of the total of column E in row 4, or one-third of it in rows 5 to 7 |
| (iv) to (vi) | Total income of Y1; tax payable on it; average rate of tax on total income of Y1 (R1 = tax / total income) |
| (vii) | Whether R1 is more than RA (1. Yes, 2. No) |
| (viii) | Relief admissible only when (vii) is Yes: relief = receipt in (i) x (R1 - RA) |
Rows 8 and 9: summary
| Row | Nature of receipt | Amount of receipt (A) | Relief admissible (B) |
|---|---|---|---|
| 8(i) | Additional salary or family pension | Total of column B of 3(i) | From 3(viii) |
| 8(ii) | Gratuity (past services under 15 years) | From 4(i) | From 4(viii) |
| 8(iii) | Gratuity (past services 15 years or more) | From 5(i) | From 5(viii) |
| 8(iv) | Retrenchment compensation | From 6(i) | From 6(viii) |
| 8(v) | Commutation of pension | From 7(i) | From 7(viii) |
| 8(vi) | Any other receipt | Entered by the assessee | Entered by the assessee |
| 8(vii) | Total | Sum of 8(i) to 8(vi) | Sum of 8(i) to 8(vi) |
Row 9 is the total relief admissible during the relevant tax year, taken from column B of row 8(vii).
Verification and Notes
The verification is made by the assessee, who gives name and Permanent Account Number and affirms that the information is correct and complete as far as the signatory knows and believes and is in accordance with the provisions of the Act. The form carries place, date, name and signature. There are four Notes: (1) an individual's first, middle and last names are given in full without abbreviation, and in any other case also the name is given in full; (2) the address contains country or region, flat or door or building, road or street or block or sector, PIN or ZIP code, post office, area or locality, district and state; (3) the relief for each type of receipt is calculated in the manner given in the corresponding entry of the Table in rule 73(1), and for any other receipt as per rule 73(2); (4) amounts are filled in rupees unless otherwise provided.
Example. Devika Rao (invented) retires and receives gratuity for past services of more than fifteen years in a tax year in which her total income is higher than in earlier years. In Part A she records her details and the tax year. In row 5 she enters the gratuity, the total income and tax for the three preceding tax years with one-third of the gratuity added, and the average rate for the relevant tax year. If that rate is higher than the average of the earlier rates, row 5(viii) gives the relief, and row 8(iii) carries it to row 9.
Need help with a relief claim?
A claim for relief needs total income and tax for several earlier tax years, and an error in one year flows into every row. Our income tax return filing team can review the computation and the supporting records before the claim is made.
Key takeaways
- Form 39 is prescribed by rule 73 for relief under section 157(1).
- Part A has the assessee's details and the tax year; Part B has relief rows 3 to 9.
- Row 3 attributes arrears of salary or family pension to the years they relate to.
- Rows 4 to 7 compare the average rate of tax for the year of receipt with the average of earlier years' rates (two years for gratuity under 15 years, three for the others).
- Relief arises only if the rate in the year of receipt is higher.
- Row 8 summarises and row 9 totals the relief.
Read next
- Rule 73: relief under section 157(1) in Form 39
- Section 157: relief on salary arrears
- Forms 41, 42 and 43: information under section 159 and certificate of residence
- Rules 65 and 67: Form 31 and Form 33
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.