Salaried employees may get arrears payment due to pay revision. In that case, the tax burden for the salaried employee may increase because of the burden of past dues paid in the current year.
The Government has made provisions to provide relief to salaried employees in case of salary arrears in a particular year. The tax relief under Section 89 covers salary arrears and advance salary as well.
The relief under section 89 can be claimed by furnishing particulars of income in Form 10E.
Prerequisites to file Form 10E are valid user ID and password of e-filing portal.
STEP BY STEP PROCEDURE TO FILE FORM 10E ON NEW I TAX PORTAL: –
Step 1: Log in to the e-Filing portal with user ID and password.
Step 2: On Dashboard, click e-File > Income tax forms > File Income Tax Forms.
Step 3: On the File Income Tax Forms page, select Form 10E.
Step 4: Choose the Assessment Year (A.Y.) and click Continue.
Step 5: On the Instructions page, click Let’s Get Started.
Step 6: Choose the required sections to be filled and click Continue.
Step 7: Once all the details are filled in, click Preview.
Step 8: On the Preview, click Proceed to e-Verify.
Step 9: You will be taken to the e-Verify page.
After successful e-Verification, a success message is displayed along with a Transaction ID and Acknowledgement Receipt Number.
Please keep note of the Transaction ID and Acknowledgement Receipt Number for future reference. An email confirming the successful submission of the form is sent to the email ID and mobile number registered with the e-Filing portal.
OTHER RELEVANT POINTS
(a) It is mandatory to file Form 10E if you want to claim tax relief on your arrear/advance income.
(b) Form 10E can be submitted through online mode only.
(c) Form 10E has to be filed before filing your Income Tax Return.
(d) In the case of non-filing of Form 10E, the Income Tax Return will be processed but the relief claimed u/s 89 will not be allowed, even the details of the relief claim are entered in the ITR.
(e) In case the relief claimed u/s 89 is disallowed, the same shall be communicated by the department through an intimation u/s 143(1) after the processing of ITR is complete.
Note: Form 10E is not yet enabled in the new portal.
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