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How to Fill Form 10E to Claim Relief Under Section 89(1)?

Updated on: May 8th, 2023


8 min read

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Section 89(1) of the Income Tax Act offers relief from receipt of past income in the current year for any change in taxation laws. The relief is provided by recalculating the tax outflow on such arrears of income according to the taxation rules applicable in both the years, year of receipt, and the year to which the income pertains. Any increase in the tax outflow due to change in taxation rules in the year of receipt is allowed as 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.

In simple words, you are saved from paying more tax because of delay in payment to you.

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

What is Form 10E?

If an individual is eligible for tax relief on salary received in arrears or advance, he/she must file Form 10E. It is mandatory to fill out Form 10E when an individual wants to claim tax relief under Section 89(1) of the Income Tax Act 1961. Section 89(1) provides tax tax relief for delayed salary received in the form of arrears or received a family pension in arrears.

Who should file Form 10E?

An individual should file Form 10E if he/she has received the following income during the previous financial year:

  • Arrears of salary
  • Family pension in arrears
  • Advance salary
  • Gratuity
  • Commuted pension
  • Compensation on termination of employment

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). 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 –

Step 1: Login to e-Filing portal with your User ID and password along with the date of birth.

Step 2: After you have logged in, click on the tab named ‘e-file’ and select the 2nd option ‘Income Tax Form’. Further select ‘File Income Tax Forms’.

how to file form 10e

Step 3: Once you select ‘File ITR forms’, the below screen will appear with three options: (i) Person with Business/ Professional Income (ii) Person without Business/Professional Income (iii) Persons not dependent on any source of Income.

select file itr forms

Step 4: Select the second option, Persons without Business/Professional Income. You will find Form 10E link under this option.

form 10e link

Step 5: Click on the link of Form 10E, next screen will appear. Select the assessment year for which you want to file Form 10E.

file form 10e

Step 6: Then you can click on ‘Lets get started’ to start filing your Form 10E.

start filing your form 10e

Important Points About the Form 10E

  • Form 10E is mandatory for individuals claiming tax relief under Section 89(1).
  • Form 10E cannot be downloaded and filed offline. It is completely online to be filled and submitted on the Income Tax portal.
  • If a taxpayer has claimed tax relief under section 89(1) in the previous year but has not submitted Form 10E, he/she would receive a notice from the Income Tax Department for non-compliance.
  • Taxpayers must file Form 10E online before filing their income tax return.
  • The arrears on salary may pertain to earlier financial years, but taxpayers must choose the assessment year in which they have received the arrears while filling Form 10E.

Frequently Asked Questions

Can I file Form 10E during filing my Income Tax Return (ITR)?

No. Form 10E has to be filed before filing your ITR to claim the tax relief provided under Section 89(1).

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

If you do not file Form 10E but claim relief under Section 89 in your ITR, your ITR will be processed, but the relief claimed under Section 89 will not be allowed.

Who can file Form 10E?

All registered users, who are individuals, can file Form 10E on the e-Filing portal to claim relief as per Section 89 of the Income Tax Act, 1961. 

Can I download and fill out Form 10E offline?

No, you cannot download Form 10E. It is completely online. Hence it needs to be submitted after logging into the e-Filing portal.

Can I file Form 10E to claim relief for Voluntary Retirement Scheme (VRS) compensation when I have claimed tax exemption?

No. Section 89(1) does not provide tax relief for Voluntary Retirement Scheme (VRS) compensation when you have previously claimed tax exemption for the same under Section 10(10C).

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