1. Further to my article How To File Form 10E in New Tax Portal – Arrears Under Sec 89 dated 21.06.2021, let’s try to understand the calculation of Relief and procedure to file FORM 10E with the help of practical Illustration

Form 10 E is enabled on New Income Tax Portal.

2. ILLUSTRATION: Mr. Prasanna received the arrears of salary in FY 2020-21.  The Arrears pertains to the salary for FY 2017-18, FY 2018-19, FY 2019-20. Details are as follows:

Sl Particulars Financial Year Assessment Year Amount (Rs.) Amount( Rs.)
a Taxable Salary 2020-21 2021-22     8,00,000
b Arrears  for the year 2017-18 2018-19     75,000
c Arrears  for the year 2018-19 2019-20   1,00,000
d Arrears for the year 2019-20 2020-21   1,25,000
e Total Arrears (b+c+d)     3,00,000
f Total Salary (including Arrears (a+e) 2021-22   11,00,000
g. Tax (including H&E Cess) on total salary including arrear ( Tax on income (f)) 2021-22    1,48,200
h. Tax (including H&E Cess) on total salary without considering  arrear ( Tax on (a)) 2021-22       75,400
i Additional Tax due to Arrears (g-h) 2021-22        72,800

3. CALCULATION OF RELIEF UNDER SECTION 89(1) It is advisable to do the following calculations and keep the figures ready for cross-checking before filing Form 10E on the new Income Tax Portal. New Income Tax Portal is giving wrong tax calculation which is editable and can be corrected as per the pre calculated amount .

Sl PARTICULARS FY 2017-18           (AY 2018-19) FY 2018-19 (AY 2019-20) FY 2019-20 (AY 2020-21)
Before Arrears After Arrears Before Arrears After Arrears Before Arrears After Arrears
a Total Income (Rs.) 575000 575000 600000 600000 675000 675000
b Arrears  75000 100000 125000
c Total Income

(a+b)

575000 650000 600000 700000 675000 800000
d Deductions 150000 150000 150000 150000 150000 150000
e Net Taxable Income(c-d) 425000 500000 450000 550000 525000 650000
f Tax Liability * 9013 12875 10400 23400 18200 44200
g Tax on Arrear (tax after arrears- before arrears) 3862 13000 26000
h Total Tax on Arrears in respective years If the amount is received in respective years, the tax liability would be Rs 3862+13000+26000 = Rs 42,862

 

i Relief U/S 89(1) Additional Tax Liability due to late receipts of amount

Rs. 72,800-42,862 = Rs. 29938/-

4. TAX CALCULATOR   For calculating  Tax Liability * of  previous Financial Years Income: go to www.incometaxindia.gov.in ( Registration & login is not required for tax calculator)

Click on Tax Tools under the heading Tax Information & Services

Click on Tax Tools under the heading Tax Information & Services

Click on Income and Tax Calculator

Click on Income and Tax Calculator

Select Assessment Year > Enter the amount. Tax Liability will be calculated automatically.

Enter the amount. Tax Liability will be calculated automatically

You can calculate tax liability (pre receipt of arrears and post receipt as well) for each of the previous years with the help of this calculator.

4. FILING OF FORM 10E: Refer to heading Step by Step Procedure to File Form 10E in the article How To File Form 10E in New Tax Portal – Arrears Under Sec 89 dated 21.06.2021.

Login to http://www.incometax.gov.in

On the File Income Tax Forms page, select Form 10E.

Choose the Assessment Year (A.Y.) and click Continue.

On the Instructions page, click Let’s Get Started.

Choose the required sections to be filled and click Continue.

Choose the required sections to be filled and click Continue

Personal Information will be auto-populated. You can edit/ modify if required. Click on Arrear Salary / Family Pension

Personal Information will be auto-populated

First, enter the details in Table A (as calculated above with the help of a tax calculator)

enter the details in Table A

Now add the details in Arrears Salary (Annexure 1) & cross-check the amount calculated with the help of the tax calculator and amount auto calculated in Form 10E above.

Arrears Salary (Annexure 1) & cross-check

New Income Tax Portal is giving wrong tax calculation which is editable and can be corrected as per the below calculation. It is not even accepting 0 value wherever tax is Zero. Write X amount i.e Rs 10 and Edit later on before clicking on save.

 Click on Save & file Form 10E after e-verifying the same.

Click on Save & file Form 10E after e-verifying the same.

Note: An online session of live filing of Form E will be conducted by the Author on Knowledge Sharing Hub on 31st July 2021 at 08.00 pm. For attending the session, please contact CMA Satish Mehta – Mobile Number +91 9825231592

_________

Disclaimer: The article is for education purposes only.

The author can be approached at caanitabhadra@gmail.com

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69 Comments

  1. jagadish sethy says:

    while calculating tax on total income as per column number 2 & 4 should i include relief availed u/s 89 in that particular previous year (FY) or not ?

  2. Rajavel says:

    iam also unable to save personal details in form 10e. they are saying to wait for some days. the issue is taken by the team. but almost a month has been passed till now no resolution

    1. Manikandan E says:

      I’m also facing same problem. Personal details tab is showing incomplete in Form 10E and is not allowing us to save it after modification. Grievance redressal is not giving any reply. Somebody give solution.

  3. Abcd says:

    While calculating tax in column 2 & 4, should we consider rebate or not applicable for that particular financial year? Because tax already paid after considering the rebate right?

  4. sanjay says:

    1. In form 10E the column “Previous Years” means the The year Assessment years to which arrears belong.
    Can we correct form 10E after submitting it, and filling ITR-1

  5. Dk says:

    Verification of 10 E done. Now the system is charging penalty of Rs 5000 under sec 234 F for late submission of ITR . Is it due to last date of filing ITR 31 july? Is Portal ka bhawan hi malik h.

    1. Anita Bhadra says:

      Good to know.
      Please check / Recheck details in Form 10E before submission.

      It is observed that in some cases, Prefill / Autofill amount is incorrect.
      Cross-check with manual calculation of Relief amount before submission of Form 10E

  6. HEMANT YADAV says:

    E verification of 10 E done. Now the system is charging penalty of Rs 5000 under sec 234 F for late submission of ITR .Mam please tell the way to avoid this penalty.

    1. Swaty says:

      Same problem… Tried many times but no success so far… Lodged grievance two times… No solution… Please any one tell what is the way out

  7. Mrinal Kanti Paira says:

    After e- verification of submission of 10E one error message comes, your form has some errors, fix it and try, but they don’t show where the error and when reopen the same file then first calculation part shows no tax calculating data. What is it’s solution please tell

        1. C K GUNASEKAR says:

          Please go for BANK ACCOUNT EVC VERIFICATION OPTION at final step form will be SUBMITTED.i tryed and submitted successfully. Don’t Go for adhaar verification. Try it

  8. Amol says:

    Same error. While filing form 10E after entering OTP for e verification the website says ‘error in form data. Please fix the error and try again.’ Even after entering correct particulars and repeated attempts unable to file form 10E. Kindly provide a solution for the same.

  9. Dk says:

    I received Salary Arrears for the previous five years, while filing Form 10E on new portal it shows an error: ‘Form Data Has some Errors. Please fix it and then try again.’
    What is the solution to it?

  10. Shreya says:

    On submitting form 10 E error message ‘form data has some error’ plz fix and then try again. What is actual problem? Please tell me

  11. Deepak says:

    On submitting form 10 E error message ‘form data has some error’ plz fix and then try again. What is actual problem? Please tell me

  12. MOUNIKA says:

    Mam, can you please tell me whether to enter taxable income or total income after deduction of arrears in the field “Total income (after deduction of arrears)” in form 10E.
    Thank you.

    1. Anita Bhadra says:

      The query is for which Row No.?
      Form 10E – First row is total income before Arrear,
      2nd is the amount of Arrears & 3rd is total income including Arrears

  13. NABIN CHANDRA SAHA says:

    I fill up 10 E form along with itr 1 on 18.10.20(A.Y.20-21),but yet not processed.
    Grievances 6 submitted, but no response.
    I am senior citizen (Gramin Bank officer). Communication received Rs 900000. Is it taxable income?

  14. Lalita bhadauria says:

    Form 10 e data error found please fix it this error found after submitting my 10e form e verification please let me know

  15. Ganaraj Bhat Y says:

    Same form 10 E submitting error. Form data has errors, please fix it and try again. Please post reply after the issue is resolved

  16. ajay kandwal says:

    after submitting form 10e a msg received as (Form data has some error plz fix and try again later) please give me a solution…thnx

    1. Anita Bhadra says:

      It is a portal new Income Tax Portal issue. At this point in time,
      No solution is available at this point in time but to wait for some time.

  17. Ritesh Agarwal says:

    I received Salary Arrears for the previous three years, while filing Form 10E on new portal it shows an error: ‘Form Data Has some Errors. Please fix it and then try again.’
    What is the solution to it?

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