How to file Form 10E for Tax Relief ?

Form 10E is filed to claim relief under Section 89(1) of the Income Tax Act. As per Section 89(1), if a salaried individual receives any advance/ arrears of salary amount, such individual may have to pay taxes on the total amount received.

The Income Tax Department has made provision to safeguard such individuals from additional tax liability arising due to any delay in receiving income under Section 89(1). In simple terms, if any part of the salary is received in arrears, then tax savings can be claimed under Section 89(1) through Form 10E filing. This article aims at the procedure for filing Form 10E online.

What are the basic elements of Form 10E?

  • A form to be filed by an individual claiming relief under Section 89 of Income-tax Act, 1961.
  • It is used to furnish particulars of income received under section 192(2A) of the Income-tax Act, 1961.
  • If the taxpayer claims relief, but form 10E is not filed, a notice might be issued by the Tax Department stating non-filing of online Form 10E.
  • Downloading this form is not required; one can submit it online after logging in to the e-Filing portal.
  • It is to be filed before filing Income Tax Return by the taxpayer.
  • Copy of this Form is not required to be attached with an income tax return, but the taxpayer must keep a copy for record purposes.

How to fill Form 10E?

The steps are laid out below for filing Form 10E:

  • Visit the Income Tax e-filing portal.
  • Login using User ID and password.
  • Go to the 'e-File’ option and select ‘Income Tax Forms’.
  • Select 'File Income Tax Forms' from subdivision of option ‘Income Tax Forms’.
  • After that 3 different categories are displayed on the page; go to ‘Persons without Business/Professional Income’. Then click on ‘Form 10E’.
  • Select the Assessment Year (or AY) for which Form 10E is filed. Then click the 'let get started' option to fill the form. 
  • Fill in the necessary details and click on the ‘Save Draft’ button.
  • Select the 'Preview & Submit’ button to review the details. Then submit the form.

The following details are to be entered in Table A of the Income Tax Form 10E:

  • Details of arrears received for the previous year.
  • Details of such previous year
  • Income excluding arrears belonging to the previous year.
  • Income including arrears belonging to the previous year (Total of 2 and 3)
  • Total income of the previous year, including arrears: Total of 2 and 3.
  • Tax on the total amount of income excluding arrears (Tax in 2)
  • Tax on the total amount of income including arrears (Tax in 4)
  • The difference in values obtained in 5 from the value obtained in 6.
  • Other annexures (as applicable on the applicant depending on the income)

What is the eligibility for Form 10E filing?

A salaried individual in the following entities can file Form 10E:

  • Government employee
  • Co-operative society
  • University
  • Institution
  • Local authority
  • Company employee
  • Association or body

For a salaried person, it is important to file Form 10E properly before filing his income tax return. Otherwise, it will not provide relief.

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