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?
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 (assessment year) 2015-16) it has been made mandatory by the Income Tax Department to file Form 10E if you have received some salary in arrears.
What happens if I haven’t filed 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.
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 about Income Tax Notice
How to File Form 10E?
Taxpayers who have claimed relief under Section 89(1) can make the filing of Form 10E through online.
- 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).
- 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.