Form 10E

If an individual has received a portion of their salary in advance or in arrears; or if they have received their family pension in arrears, they are eligible for some tax deductions under Section 89(1), read along with Rule 21A.

According to the Income Tax Act 1961, taxpayers must fill out form 10E if they intend to claim tax deductions under Section 89(1).

For those who are not aware, the income tax 10E format can get a little complicated.

Essentially, the arrears that an individual receives, are reflected in part B of Form 16. To understand the particulars of the received income under Section 192(2A), the 10E income tax return form is required.

The 10E income tax form must be filed by taxpayers who have received the income during the previous FY:

• Gratuity

• Salary in arrears

• Salary in advance

• Commuted pension (lump sum amount)

• Pension of the family in arrears

• Compensation for employment termination

• For the convenience of taxpayers, the government has made it easy to file form 10E online. Let’s explore the process for the same.

Here’s how one can fill out Form 10E online:

• Visit the official e-filing portal of the Income Tax Department and login in.

• Next, click “e-file” and then “Income Tax Form.” From the provided list, click “File Income Tax Forms.”

• Once you click on “File ITR Forms,” you will be shown with 3 choices.

• Select “Person without Business/Professional Income” and under this, click on the link for the 10E income tax return form.

• You will then be asked to choose the AY for which you are filing the form 10E. For the financial year 2024-2025, select the assessment year 2025-2026. On the subsequent screen, click on “Let’s get started.”

• If you are filing form 10E in income tax for salary arrears, then choose Annexure I. For other cases, choose as applicable.

• Once the schedule has been filled up, you can move on to the filing of form 10E.

Any taxpayer claiming tax relief under Section 89(1) must mandatorily fill out the 10E income tax return form

• The income tax 10E format cannot be submitted offline. It is an exclusively online process and the form must be submitted via the official E-filing portal.

• The Income Tax Department will give a notice of non-compliance to individuals who have claimed tax deductions in the previous year (under section 89(1)) but have failed to submit form 10E

• Form 10E filing must be completed before filing for income tax returns

• The arrears of salary can pertain to previous financial years. However, you must choose the AY in which you have been paid the said arrears when filing form 10E online.

Taxpayers are eligible for some tax relief under Section 89(1) and Rule 21A if they have received any part of their income, salary, or family pension in arrears or in advance. To claim for this tax break under Section 89(1), taxpayers must file form 10E online via the official E-filing portal of the Income Tax Department.

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