Form 10E: Have you received your salary in arrears? If yes, you need to file the Form 10E. Read the complete article to know why and How to file Form 10E. Also, check what happens if you haven’t filed Form 10E?
What is relief u/s 89(1)?
Income Tax is calculated based on your total income earned or received during the Financial year. If your total taxable income includes any past dues paid in the assessment year, you may be worried about paying a higher tax on such arrears. To save you from any additional burden of tax due to delay in receiving income, the Income tax laws allow a relief under section 89(1). If an employee has been given any portion of your salary in arrears or in advance or received a family pension in arrears, you are allowed some tax relief under section 89(1) read along with Rule 21A.
To claim relief u/s 89(1), you must file Form 10E. The Assessee who claim relief under section 89(1) without filing Income Tax Form 10E you will receive notice from the Income Tax Department.
Sometimes, salary paid to an employee includes past dues. As tax rates may change every year, you may be worried to pay the higher tax on these arrears. To avoid this additional burden of tax due to arrears (delay in receiving income), the Income tax laws introduced relief under Section 89(1). The taxpayers who are claiming for such relief need to file the Income Tax Form 10E. Recently i.e., starting from the financial year 2014-15 (AY 2015-16) it has been made mandatory by the Income Tax Department to file Form 10E on Incometaxefiling Portal if you have received some salary in arrears. Those who missed filing this form 10E were not allowed to get the relief while processing their Income tax returns and may have even received the notice for non-filing of Form 10E. Download Income Tax Form 10E here. This 10E Form is mandatory to claim relief u/s 89(1).
What happens if I haven’t filed Form 10E?
Starting income tax returns for FY 2014-15 (AY 2015-16), the taxation department has made it mandatory to file Form 10E if you want to claim relief u/s 89(1). The assessee who has claimed relief under section 89(1) but has not filed Form 10E have received an income tax notice from the tax department. Check cases in which you receive Income Tax Notice for non-filing of Relief Form 10E. If you have claimed relief under Section 89(1) and not filed the Form 10E, then you will receive an Income Tax Notice from the Income Tax Department. Taxpayers who did so, have received an Income Tax Notice with the following lines. Refer Income tax 10e form guideline to claim relief u/s 89(1).
The relief under section 89 has not been allowed in your case, as the online Form 10E has not been filed by you. The furnishing of online form 10E is required as per section 89 of the Income Tax Act.
Read More: Income Tax Notice
How to File Form 10E Online?
Check out the complete information about 10E Form filing procedure in the following section. The Income Tax Form 10E can be filed online. Here are the steps to file Form 10E online. Taxpayers who have claimed relief u/s 89(1) can make the filing of Form 10E through online. You can e-file 10E Form by following simple steps.
- Visit the Income Tax India Web Portal i.e. www.incometaxindiaefiling.gov.in.
- Log in with your User ID and Password along with the DOB (Date of Birth) through Incometaxefiling Login option.
- On the top menu, you can find e-file. Click on that and select and select ‘Prepare & Submit Online Form (Other than ITR)’. or
- On the left menu, you can find ‘Services’. In that click on Submit Returns/Forms and log in with User ID and Password.
- The resulting page will ask you for PAN number, Form Name, and Assessment Year.
- Enter the PAN number, Select Form 10E from the drop-down and next select Assessment Year for which you want to file Form 10E.
- The resulting page will show the Instructions on how to file Form 10E.
- Follow those instructions carefully and File the Form 10E.
- After giving the required details, click on Submit.
Note: Be careful while selecting the AY. If you have claimed relief in FY 2014-15, select your AY (assessment year) as 2015-16. In other words, choose the AY in which you have received the arrears. For example, if you have received the arrears in the financial year 2014-15, you have to choose the assessment year 2015-16.
Frequently Asked Questions
Do I need to submit Form 10E after filing my Income tax return, or it has to be submitted before filing the tax return?
Taxpayers who have claimed relief under Section 89(1) must submit Form 10E before filing their income tax return. In case, you have submitted your Income Tax return and claimed relief under Section 89 (1), and you have not filed the Form 10E, most likely you will receive an Income Tax notice from the IT department asking you to file Form 10E.
Do I need to attach a copy of Form 10E with my Income tax return?
Form 10E has to be submitted through Online by the taxpayers who have claimed relief under Section 89(1). No need to attach that copy of Form 10E with your Income Tax Return.
Do I need to submit the Form 10E to my employer?
It is not mandatory to submit the form 10E to the employer. Your employer may ask for confirmation of submission of this form before adjusting your taxes and allowing tax relief.