Form 10E is an official online form required by the Income Tax Department of India for taxpayers who want to claim relief under Section 89(1) of the Income-tax Act, 1961. Section 89(1) exists to make taxation fair when a person receives salary or related income in arrears or in advance, such as delayed past-year salary, arrears of family pension, or advance salary. Without filing Form 10E, the tax department will not allow this relief, even if you correctly report arrears in your income tax return (ITR). The form must be submitted before you file your ITR so that the department can recalculate your total tax liability fairly over the relevant years.

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What does Form 10E mean?

Form 10E is a mandatory online declaration that allows eligible individuals to claim tax relief under Section 89(1) when they receive income outside the normal period of earning. This relief helps spread the tax impact of arrears or advance income over the years in which it should have been earned, preventing a sudden tax spike in the year of receipt. Without Form 10E, even if arrears are included in your return, the department may deny the claimed relief.

Who should file Form 10E?

You should file Form 10E if, during the previous financial year:

You received salary arrears or advance salary
You received a family pension in arrears
You received gratuity, commuted pension, or compensation for past services
You want to claim Section 89 relief in your ITR

This helps ensure the tax on the received amount is calculated in line with the year the income actually belonged to, avoiding unnecessary extra tax.

Why is Form 10E important?

When salary or similar income is received late or in advance, it can increase your taxable income for the year of receipt, often pushing you into a higher tax bracket. Section 89(1) helps you claim relief by recalculating tax as if the income were earned in its rightful period. Form 10E is crucial because:

It is mandatory to get Section 89 relief.
If not filed before your ITR, the relief is not allowed and you may receive a notice.
It ensures fair tax liability, preventing over-taxation on lump sums.

When to File Form 10E?

Form 10E must be filed before you submit your Income Tax Return (ITR) for the year in which you claim relief under Section 89(1). If you fail to do this, even if you claim the relief on your return, the department could disallow it while processing.

Step-by-Step: How to fill Form 10E online

Step 1: Log In to the Income Tax e-Filing Portal

Visit the official Income Tax e-Filing portal (www.incometax.gov.in) and log in with your PAN, password, and other credentials.

Step 2: Go to the e-File Section

From your dashboard, click on e-File → Income Tax Forms → File Income Tax Forms.

Step 3: Select Form 10E

In the list of forms, choose Form 10E. You may need to select Person without Business/Professional Income if applicable.

Step 4: Choose the Assessment Year

Select the Assessment Year for which you are claiming Section 89 relief (the year you received the arrears/advance).

Step 5: Start Filling the Form

Click Let’s Get Started and enter details such as:

Total income received in the current year
Arrears or advance salary details
The year(s) to which the arrears pertain
Any family pension or gratuity details (if applicable)

Step 6: Review and Preview

Carefully review all entries and use the preview option to check for errors before submitting.

Step 7: Submit the Form

Complete the process by saving and submitting. There is no offline filing option it must be done online only.

Key sections and details to enter

While filling Form 10E, you will commonly need to provide:

Your PAN and basic personal details
Financial year and assessment year details
Amounts of salary, arrears, advance salary, gratuity, or pension
Years to which those amounts relate
Computation of how relief is as per Section 89(1)

Some versions of the form include annexures depending on the type of arrears or income received.

What Happens after Filing?

Once you file Form 10E:

It links to your ITR filing and helps the department calculate eligible tax relief.
Relief under Section 89(1) is then applied when your ITR is processed.
If Form 10E is missing, your relief claim can be rejected, and you may receive a notice.

Mistakes to Avoid

Do not file the ITR before submitting Form 10E, as Section 89 relief may be disallowed.
Ensure accurate details of all income and years related to arrears or advance payments.
Choose the correct assessment year in the form matching when you received the arrears.

Conclusion

Form 10E is an important mandatory form for taxpayers who want to claim fair tax relief under Section 89(1) when they receive salary arrears, advance salary, pension arrears, or similar income. Filing it online on the Income Tax e-Filing portal before submitting your ITR ensures that your tax liability is calculated correctly by spreading the income across its rightful periods. Without Form 10E, even correct computation of relief may be denied by the tax department.

Frequently Asked Questions (FAQs)

What is Form 10E?

It is an online form filed to claim tax relief under Section 89(1) for salary arrears or advance salary.

Who must file Form 10E?

Salaried individuals or pensioners receiving arrears or advance and claiming Section 89 relief.

When should Form 10E be filed?

Before filing your Income Tax Return for the year in which you want relief.

Can Form 10E be filed offline?

No, it must be filed online through the Income Tax e-Filing portal.

What incomes are covered for Section 89 relief?

Salary arrears, advance salary, family pension arrears, gratuity, and related compensation.

What happens if Form 10E is not filed?

The claimed Section 89 relief is likely to be disallowed and you may face a tax notice.

Where do I find Form 10E?

On the Income Tax Department’s e-Filing portal under Income Tax Forms.

Which assessment year do I select?

Choose the year in which you received the arrears or advance salary.

Is Form 10E necessary even under the new tax regime?

Yes, it is required to claim relief under Section 89(1) if applicable.

Do I attach Form 10E with ITR?

No, you file it separately on the portal; it is linked electronically with your return.

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