Filing Form 10E is Mandatory to Claim Relief under Section 89(1)

What Is Relief under Section 89(1)?

Tax is calculated on your total income received during the year. If your total income includes any past dues paid in the current year, you may be worried about paying a higher tax on such arrears (usually tax rates have gone up over the years).

To save you from any additional burden of tax due to delay in receiving income, the tax laws allow a relief under Section 89(1). If you have received any portion of your salary in arrears or in advance, or you have received a family pension in arrears, you are allowed some tax relief under Section 89(1) read along with Rule 21A.

You can read in detail about how to calculate relief under Section 89(1) – Here

Income Tax Notice for Non-Filing of Form 10E

Starting income tax returns for the Financial Year 2014-15 (The Assessment Year 2015-16), the Income Tax Department has made it mandatory to file form 10E if you want to claim relief under Section 89(1). Download form 10E.

Taxpayers who have claimed relief under Section 89(1) but have not filed form 10E have received an income tax notice from the Tax Department stating that –

The relief u/s 89 has not been allowed in your case, as the online form 10E has not been filed by you. The furnishing of Online form 10E is required as per sec.89 of the Income Tax Act

How to File Form 10E

Form 10E can be filed online. Here are the following steps to file Form 10E online –

Login to https://incometaxindiaefiling.gov.in/ with your User ID and password along with the date of birth.

After you have logged in, click on tab named ‘e-file’ and select ‘Prepare & Submit Online Form (Other than ITR)’

The below screen shall appear. Select Form 10E from the drop down.

Now select the Assessment Year for which you want to file Form 10E.

The below screen shall appear with instructions on how to file form 10E and you keep on clicking on the blue tabs and enter the relevant information.