How to File Form 10E for Tax Relief on Salary Arrears?

As a salaried employee when you earn an prior salary or arrears it is possible to pay tax on the amount you received. In the case of arrears, however, the Income Tax Department, however will shield you from tax liabilities resulting from any delay in the receipt of the income you are entitled to pursuant to Section 89(1). If, for instance, you get any part of your earnings in arrears, you are entitled to benefit from tax savings pursuant to Section 89(1) in the same way by filing a 10E form. 10E filing. According to Section 89(1) In accordance with Section 89(1), you are entitled to tax relief via the recalculation of tax in both tax years (in which the arrears were received and the arrears are pertaining to). The tax obligation is adjusted based on the assumption that the arrears are due in the year that they were due. income tax for salaried person How does Tax Relief work pursuant to Section 89(1)? Taxpayers these kinds of arrears that are received are tax deductible within the year they were received: Salary Arrears Salary advancement Family pension arrears Commuted pension Any compensation you receive from your employer in connection with the your termination from employment Gratuity You are able to, however, reduce the tax obligation because of delay in receiving the revenue under Section 89(1). income tax for salaried employees What is Form 10E? It is required to complete Form 10E If you wish to apply for the tax benefit in accordance with Section 89(1) of the Income Tax Act 1961. In accordance with Section 89(1) of this Act it is possible for tax relief on delayed salaries that you receive in the form of arrears. Arrears that are received are recorded into Part B on the Form 16. Form 10E is necessary to report the details of revenue under Section 192(2A) and is filled out by a Government employee or any employee employed in the workplace co-operative society or local authority, university or association, institution, or other body. How to File Form 10E? The following steps will explain how to file Form 10E Log in to your income Tax E-filing account Click on e-File, and then Income Tax Forms Select 'FORM NO. 10E Form to apply for relief under 90 in the field 'Form Name.' Choose your Assessment Year (or AY) in order to complete Form 10E (for instance, choose the Assessment Year as 2019-20, in the event that the salary arrears you've received are related to your Financial Year 2018-19 (or Assessment Year 2019-20) Choose the Submission mode and click 'Continue.' Input the relevant information and then click the 'Save Draft button To calculate those who are in Arrears in Salary choose Annexure I* and complete the required information as needed. Click on "Preview & Submit Review the information and submit the Form * Please be aware these Anexxtures are available through the menu of pages The menu is titled Annexure-I: For Arrears or Advance Salary Annexe-II for gratuity (Past services that exceed five years but not more than fifteen years) Annexure IIA for gratuity (Past Services for at least 15 years) Annexure III: Compensation for End of employment Annexure-IV: For Commutation of Pension Important Things to Consider While Filing Form 10E Take note of the following points when filling out the form 10E to the tax relief claim on salaries arrears You have to file Form 10E online through the Income Tax Department website If you sought tax relief in the previous fiscal year but didn't complete the Form 10E You would be sent an email of the Income Tax Department for non-compliance It is mandatory to fill out Form 10E online prior the filing of your income tax return. Arrears on salaries may relate to prior financial years however, you should select which Assessment Year in which you received the arrears when you fill out the form 10E. There is no need to include any copies of the Form 10E you have submitted to your income tax return (keep one however, to record your information) Although your employer might require confirmation after you have completed Form 10E but it is not required to give this Form to your employer. Tax relief provided under Section 89(1) can applicable to the Family Pension that is in arrears There there is no tax relief under the Section 89(1) to pay VRS (Voluntary Retirement Scheme) compensation if you've previously claimed tax exemption for the same subject matter under Section 10(10C) These steps can help you file and complete Form 10E online in order to claim the tax exemption in accordance with Section 89(1) of the Income Tax Act 1961. Form 10E is required in order to lower the tax burden on wages you receive in arrears. If you are experiencing questions, issues or doubts regarding Section 89(1) and Form 10E and tax returns, it is essential to seek out an expert for advice to ensure that you submit the tax return on time without hassle. RELATED ARTICLES How To Calculate TDS On Rent? What Is The Difference Between Gross Income & Total Income? A guide for filing the 3 form