There might be a situation wherein you receive your salary or pension in arrears. Under this circumstances, you might get indulged in various tax concerns. To overcome this, there are certain lax laws which offers a sigh of relief to the taxpayers from additional tax burdens which are caused due to delay in the receiving income. You can claim tax relief under section 89 (1) with Form 10E on salary arrears.
What is Form 10E?
The Income Tax Department has made it mandatory for the taxpayers to file Form 10 E in order to claim relief u/s 89(1). In other words, the Income Tax Act u/s 89 1 offers relief to the assessee in case of any salary or pension received in advanced or arrears in a financial year. This relief is granted because the total income assessed is at the higher rate than that would be assessed as actual. To claim this relief, assessees are required to file Form 10E.
How to File Form 10E Online?
The Form 10E online filing is quite simple and easy process. For 10 E Form filing, you are required to follow the below-mentioned steps carefully.
Step 1: Visit the official website of the Income Tax Department at www.incometaxindiaefiling.gov.in
Step 2: Go to e-File. Click ‘Income Tax Forms’
Step 3: Select ‘Form No. 10E’ form for relief u/s 89 under ‘Form Name’
Step 4: Select the Assessment Year (AY)
Step 5: Select ‘Submission Mode’. Click ‘Continue’
Step 6: Fill the details required and then click ‘Save Draft’ tab
Step 7: For ‘Arrears of Salary’, select ‘Annexure-1’and fill in the details required
Step 8: Click ‘Preview & Submit’ to review details. Click ‘Submit’
How to Prepare 10E Form?
To prepare Form 10E, it is important keep your documents handy at the time of Form 10 E online filing. Below given are some of the important parts that are available in Form 10E-
- Personal Information- PAN and Contact Details
- Annexure I (Arrears) – Salary / Family Pension received in arrears
- Annexure I (Advance) – Salary / Family Pension received in advance
- Annexure II & IIA (Gratuity) – Payment in nature of Gratuity in respect of past services
- Annexure III (Compensation) – Payment in nature of compensation from the employer or previous employer at or in connection with termination of employment after continuous service of not more than 3 years or where the unexpired portion of term of employment is also not less than 3 years.
- Annexure IV (Pension) – Payment in commutation of pension
Form 10E Calculation
The Income Tax Department offers Form 10E calculation demo where taxpayers can calculate the tax relief under section 89 of the Income Tax Act. The tax relief calculation is amended up to Finance Act, 2022.
- You are required to visit the official website of Income Tax Department at https://incometaxindia.gov.in/Pages/tools/relief-under-section-89.aspx for Form 10E calculation.
- Now enter the details such as Assessment Year, Previous Year, Tax Status, Residential Status and so on.
- Enter the details required such as Salary Received in Arrears, Gratuity Received, Compensation and others.
- After entering all the details, you can check your total relief under section 89 and get your Form 10E calculation done.
Note: The above calculation demo is only to enable public to have a quick and an easy access to basic tax calculation and does not purport to give correct tax.
Form 10E- FAQs
No. There is no such requirement of downloading the Form 10E. ITD provides taxpayers to submit the form online after logging in to e-filing portal.
The best time to file Form 10E would be before filing your Income Tax Return (ITR).
Yes. It is mandatory to file Form 10E if you want to claim a tax relief on salary or pension arrears.
In case you fail to file Form 10E but claim relief u/s 89 in your ITR, your 10E ITR Form will be processed but the relief claimed u/s 89 will not be allowed.