BAJAJ BROKING
March 01, 2025
4 mins read
Filing Form 10E is essential for salaried individuals seeking tax relief provisioned as per the Income Tax Act, Section 89(1). This form helps reduce tax burdens from arrears or advance salary by applying the tax rates from the year the income pertains to. It must be submitted online via the IT Department’s official portal to claim relief and ensure accurate tax calculations based on the original year of income. By filing Form 10E correctly, taxpayers can avoid disallowance of relief claims, ensuring fair tax treatment and preventing undue financial strain resulting from income received in advance or as arrears. Submitting the form on time is crucial to successfully claim the tax relief available.
Form 10E is a mandatory form required for claiming tax relief provided under the Income Tax Act, Section 89(1). This form is crucial for individuals who receive income in the form of arrears, advance salary, or family pension. It helps prevent undue tax burdens on past-due income, ensuring fair taxation based on the original year of receipt.
Form 10E is required for individuals receiving salary arrears, advance salary, or family pension arrears, seeking tax relief under Section 89(1).
Employees with arrears
Individuals with advance salary
Family pension recipients
Those claiming Section 89(1) relief
Filing Form 10E online is a straightforward process. Follow these steps to submit it correctly:
Log in to your Income Tax e-filing account using your credentials.
Navigate to the “e-File” section and select “Income Tax Forms.”
Choose the option for Form 10E under Section 89(1) relief.
Select the appropriate assessment year.
Choose the submission mode and click “Continue.”
Fill in the required details, then save the draft.
For outstanding salary, choose Annexure-I and fill in the necessary details.
Review your form by selecting the preview option.
Submit the form online after verifying the details, ensuring everything is accurate and complete for proper processing and approval with all necessary documents included.
Ensure all details are accurate to avoid delays or issues with processing.
Section 89(1) of the Income Tax Act provides assistance to taxpayers receiving salary arrears or salary received in advance, ensuring that they are taxed fairly. This provision prevents taxpayers from facing higher tax liabilities due to delayed income payments. The relief works by allowing taxpayers to compute their tax based on the original year of receipt instead of the year the income is actually paid, thus reducing undue tax burden for both employees and pensioners.
Key Points
Provides tax relief for salary arrears or salary received in advance.
Applies when income from past years is received in the current year.
Ensures taxes are calculated based on the tax rates of the original year.
Helps avoid excessive tax liabilities due to delayed payments.
Must be claimed through Form 10E.
Tax relief applies to family pension, salary, and arrears.
Key Considerations for Form 10E
Form 10E is essential for claiming tax relief provided under the applicable clause of the Income Tax Act, Section 89(1). Ensure the following before filing:
It must be filed online through the official e-filing portal.
Accurate details regarding salary arrears or advance salary are necessary.
Filing Form 10E is mandatory for claiming Section 89(1) relief.
Failure to file it may lead to the disallowance of tax relief.
Keep supporting documents like Form 16 and salary slips for reference.
Submit Form 10E before filing your Income Tax Return (ITR).
Necessary Documents for Form 10E Submission
Form 16
Salary slips
Arrears/advance salary statement
Bank statements
Permanent Account Number (PAN)
Income tax return (if applicable)
Annexure-I details for salary arrears
Form 10E is essential for claiming tax relief under Income Tax Act Section 89(1) on salary arrears or salary received in advance. File it online with accurate details and necessary documents to ensure fair taxation.
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Form 10E is used to claim tax relief provisioned as per the Income Taxt Act, Section 89(1), for salary arrears or salary received in advance. It helps taxpayers avoid additional taxes due to delays in receiving income, ensuring fair tax liability for the affected financial year.
Individuals receiving salary arrears, advance salary, or family pension arrears are eligible to undertake filing of Form 10E. Employees and pensioners wishing to claim tax relief under Section 89(1) for delayed payments must file this form.
Form 10E helps claim tax relief under Section 89(1) by ensuring that income received as arrears or advance salary is taxed according to the original year’s tax rates, preventing higher tax burdens due to delayed payments.
Documents required to file Form 10E include Form 16, salary slips, arrears/advance salary statements, PAN, bank statements, and the Income Tax Return, if applicable. These documents are essential for accurate filing.
Yes, Form 10E must be filed online through the Income Tax e-filing portal. The procedure includes logging in, selecting Form 10E, filling in details, and submitting it after reviewing the information for accuracy.
Common errors include incorrect assessment year selection, missing or incorrect salary arrears details, failing to submit supporting documents, and not filing Form 10E before submitting the Income Tax Return, which may lead to tax relief disqualification.
Yes, it is mandatory to file Form 10E in order to be able to claim tax relief in cases of salary arrears as per Section 89(1). Failure to file this form may result in the disallowance of the claimed tax relief.
Section 89(1) provides tax relief on salary arrears by allowing taxpayers to calculate tax based on the tax rates of the year when the income was originally due, ensuring fair tax liability without penalizing delayed payments.
The deadline for submitting Form 10E is before filing your Income Tax Return for the relevant assessment year. Ensure it is filed on time to claim tax relief according to Section 89(1).
No, Form 10E cannot be revised after submission. Ensure all details are accurate before filing to avoid complications with claiming tax relief as per Section 89(1).
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