It is mandatory to complete Form 10E if you wish to seek tax relief under Section 89(1) of the Income Tax Act 1961.  As per Section 89(1) of the Act, you are entitled to seek tax relief for late salary earned in the form of arrears. Any arrears earned will be shown in Section B of your Form 16.

Form 10E is necessary to include details on the profits earned under Section 192(2A) that can be filed by a government servant or any employee employed in a company, cooperative society, university, local authority, agency, organization or entity.

How to fill form 10E

The preceding procedure clarify the procedure for filing Form 10E –

Go to https://incometaxindia.gov.in/forms/income-tax%20rules/103120000000007826.pdf and log in with your username and password.

After you logged in go to e-file tab and select ‘Prepare & Submit Online Form (Other than ITR)’.

form 10E

You will see this screen and from the dropdown select Form 10E.

Select the Assessment year

The above screen will be displayed with details on how to file Form 10E, and you will have to click on the blue tabs and insert the necessary information.

Useful points to know before filing form 10E

Remember the below points when filling out Form 10E for the claim of tax relief on salary arrears –

  • You should apply Form 10E online on the official website of the Income Tax Department.
  • If you received tax exemption in the preceding financial year but did not submit Form 10E, you will receive a note of non-compliance from the Income Tax Department.
  • Prior to actually filing your income tax return, you should file Form 10E online.
  • Although salary arrears can refer to earlier FY, you should select the AY in which you earned the arrears whilst also completing Form 10E.
  • You would not have to submit a duplicate of Form 10E to income tax return (keep a copy, however, for your record)
  • Although your employer may require clarification, after you have presented Form 10E, it is not necessary to send this form to your employer.
  • Tax relief under Section 89(1) shall not extend to the family pension earned in arrears
  • There really is no tax break under Section 89(1) for VRS (Voluntary Retirement Scheme) reimbursement if you have already sought the very same tax relief under Section 10C

Official link – Form 10E

All the above things will aid you in filing and submitting of Form 10E online for tax exemption pursuant to Section 89(1) of the Income Tax Act 1961. Form 10E should be submitted if you want to limit your tax obligation on salary payments earned as arrears. In the event in which you have any questions, relating to Section 89(1), Form 10E, or tax reporting, you should contact the specialist to assure that you submit the income tax return properly without any difficulties.