Form 10E

Learn how Form 10E can help you claim tax breaks.
Form 10E
3 min
6-March-2024

Income tax rules can be complex, especially when dealing with situations like receiving payment arrears or salary advances. Fortunately, India's Income Tax Act offers Section 89(1), which provides relief in such cases. Form 10E is the essential document used to claim this relief.

Section 89(1) of the Income Tax Act helps prevent unfair taxation when you receive past income in the current year due to tax law changes. This ensures you only pay what you would have owed when the income was originally earned.

What is Form 10E in income tax?

If you are eligible for tax relief on arrears (past-due salary) or advance salary, you must file Form 10E. This form is required to claim the tax break offered under Section 89(1) of the Income Tax Act 1961, which ensures fair taxation on delayed income or family pension arrears.

Who should file Form 10E?

  • Salary arrears (past-due salary payments)
  • Family pension arrears
  • Advance salary
  • Gratuity
  • Commuted pension
  • Compensation for job termination

How to file Form 10E online

  1. Log in to the e-Filing portal using your user ID, password, and date of birth.
  2. After logging in, navigate to the 'e-file' tab and select 'Income Tax Form.' Choose 'File Income Tax Forms.'
  3. Under 'File ITR forms,' three options will appear:
    • Person with Business/ Professional Income
    • Person without Business/ Professional Income
    • Persons not dependent on any source of Income.
  4. Select the second option, 'Persons without Business/ Professional Income.' You will find the Form 10E link under this category.
  5. Click on the Form 10E link, and a new screen will appear. Choose the assessment year for which you want to file Form 10E.
  6. Click on 'Let's get started' to start filing Form 10E.

Documents required to file Form 10E

  • Form 16
  • Salary slips
  • Arrears/ advance salary statement
  • Form 10E
  • Income tax return (if applicable)
  • Bank statements
  • Permanent account number (PAN)
  • Calculation of relief under Section 89(1)
  • Address and contact information

Note:

  • The specific documents needed may vary slightly based on your circumstances.
  • Consult a tax advisor if you're unsure what documentation is required.

Important points about Form 10E

  • You must file Form 10E to claim tax relief under Section 89(1).
  • There is no offline option for Form 10E. It must be completed and submitted on the Income Tax Department e-Filing portal.
  • Failing to file Form 10E, even if you have claimed Section 89(1) relief on your taxes, can result in a notice from the Income Tax Department.
  • File Form 10E before submitting your annual income tax return.
  • The assessment year you select on Form 10E should be the year you received the arrears, even if the income itself is from previous years.

Conclusion

Form 10E helps salaried individuals to manage their tax liabilities effectively. Understanding its purpose and how to file it ensures you do not overpay on taxes due to arrears or similar income.

Frequently asked questions

Form 10E mandatory to file?

Yes, Form 10E is mandatory if you want to claim tax relief under Section 89(1).

Can I claim relief under Section 89 in my ITR but could not file Form 10E?

Failing to submit Form 10E while claiming relief under Section 89 will result in your ITR being processed, but the claimed Section 89 relief won't be approved.

Can I download and fill out Form 10E offline?

No, Form 10E must be filled out and submitted online through the Income Tax e-Filing portal.

Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.