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

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

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

How to File Form 10E for Tax Relief on Salary Arrears?
  • 11th Mar 2021 |
  • 5,651

If your employer pays your past dues in the current financial year, you may incur higher taxes. You might have been in a lower tax bracket the previous financial year. But the salary arrear might propel you to a higher tax slab.

However, you can avoid paying higher taxes on such delayed income by claiming tax relief under Section 89(1) of the Income Tax Act, 1961. But to avail of this benefit, you must file Form 10E online from the income tax authorities e-filing portal. The procedure and necessary steps are described below.

Steps to file Form 10E

1. Go to the website https://incometaxindiaefiling.gov.in/.

2. Log into your e-filing account using your User ID, password and date of birth.

3. Click on the ‘e-File’ tab and select ‘Income Tax Forms.’

4. On the next screen, enter your PAN and select ‘FORM NO 10E’ under the ‘Form Name’ drop-down menu.

5. Choose the correct Assessment Year (AY) for which you need to file Form 10E.

6. Opt for the Submission Mode you prefer.

7. Provide relevant details and select ‘Save Draft.’

8. Since you are filing the form for salary arrears, select Annexure-I and enter applicable information.

9. Verify the form.

10. Click on the ‘Preview and Submit’ button and check your entries before submitting.

How to determine if you qualify for the tax relief?

As per Section 89(1), to apply the tax relief the income taxes for both the year in which the salary was due and the year when you received it are recalculated.

  • Calculate the tax payable for the year in which you received the arrears. First, calculate by including the arrear amount in your taxable income. Then calculate after excluding it.
  • Subtract the second amount from the first. This difference is the tax on the arrear. Suppose this sum is A.
  • Now, determine the payable tax for the year in which the salary was delayed without adding the arrear.
  • Again, find out the tax payable after adding the arrear to your taxable amount.
  • Compute the difference between the two tax amounts. Suppose this sum is B.

If A is higher than B, you can avail of the 89(1) relief.

Which AY to choose while filing Form 10E?

You have to select the AY during which you have received the salary arrears, even if the arrears are for an earlier year. For example, if you received arrears for the 2019-2020 financial year, you have to select AY 2020-2021.

When to submit Form 10E, before or after filing the income tax return (ITR)?

It is mandatory to submit Form 10E before you file your ITR. Otherwise, the tax authorities will not process your return.

Is it necessary to attach a copy of Form 10E with the ITR?

You have to submit Form 10E online. You need not attach a copy of the form with your ITR because all ITRs are annexure-less. However, you may want to keep a copy with yourself for your tax records. The AO might ask for such documents in the future.

Although it is not compulsory to provide Form 10E to your employer, the organization where you work might ask to see a confirmation of submission.

Who can file Form 10 E?

Any salaried employee working in the following establishments can furnish particulars of arrears received in Form 10E:

  • government organization
  • company
  • university
  • institution
  • local authority
  • co-operative society
  • association or body

Claiming exemptions under Section 89(1) in the ITR without submitting Form 10E first, results in a non-compliance notice from the tax department. Hence, fill out this form carefully and submit on time.

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Browse our library of resources

Download Brochure

Features

  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Penalty For Late Filing TDS Return

What is Section 10D of the Income Tax Act?

Tax-Free Income in India

Things to Do After Filing Income Tax Returns

How to File Income Tax Return for First Time Tax Payers

All about TDS on Salary under Section 192 – Kotak Life

धारा 80डी आयकर अधिनियम, 1961

आयकर स्लैब 2021-2022

What is the Difference Direct Tax and Indirect Tax

Tax Planning and Tax Benefits of Life Insurance

What is Form 26AS - All You Need To Know

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

Financial Benefits and Government Schemes Every Woman in India Should Know

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2021-22 & 2022-23

Tax Saving Guide for 2019-20

भारत में महिलाओं के लिए सरकारी योजना

How to file Form 16 online?

Income Tax Deductions Under Section 80C

What is Section 80CCC of the Income Tax Act 1961

How to Download Form 16?

How to File Income Tax Return - Everything You Need to Know

Income Tax Exemption for Physically Handicapped Dependent

Section 16 of the Income Tax Act (ITA), 1961

Section 80C Deductions as per Income Tax Act, 1961

Section 80G of the Income Tax Act

What are the Different Types of Taxes in India?

Guaranteed Return Plans-Why is it a must for you?

What Is Advance Tax and How Is It Calculated?

Union Budget Highlights – 1st February 2022

Income Tax Exemption for Disabled

How to File ITR Online

What is Salary Protection Insurance and Why You Need It

What is TDS Slab?

Tax Saving Options for Salaried Employees

All You Need to Know About Section 80C

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

How to Calculate returns on an assured savings plan?

Tax Saving Tips: Best Ways to Save Income Tax for 2021

What is Tax Deduction at Source (TDS)?

Top 8 Tax-Saving Methods in India- Budget Planning

धारा 80सी आयकर अधिनियम, 1961

5 Unusual Investments You Didn't Know for Saving Taxes in India

How can I get Form 16B from traces?

Tax Structure in India

A Comprehensive Guide to Understand the ITR 7 Form

Why is Form 16 Important?

Tax-Savings Investments and Options in India

Are Financial Planning and Tax Planning the Same Thing?

9 Income Tax Myths That Could Cost You Money while Filing returns

How to Pay Advance Tax Online in India

List of Important Income Tax FAQs

प्रत्यक्ष कर और अप्रत्यक्ष कर में क्या अंतर है?

Guide for Tax Calculation on your Salary

What is ITR 5 Form and How to File ITR 5?

Tax Season Is Coming- Know How to Save Tax

How to View 26AS and Download Form 26AS Online

Income Tax Benefits for Doctors

Tax Saving Options other than Section 80C

Can You Get Term Insurance Without Income Proof?

How to View 26AS and Download Form 26AS Online?

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

How to e-Verify your Income Tax Return

How to e file ITR on Income Tax Government Portal

आयकर रिटर्न (आईटीआर) फॉर्म के प्रकार

Tax Saving for Self Employed in India

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

Tax Benefits for Startups in India

What is TDS Exemption Limit?

How To Save Tax Using Life Insurance?

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

How to Save Income Tax with Insurance

What To Do If Your TDS Is Not Deposited With The Government?

8 Things to Help You Select a Savings Investment plan

Income-Tax Liability- The Difference Between Gross Income & Total Income in Calculating Income Tax

Who Should Invest In Savings Plan

What is a savings plan?

How to Check Income Tax Refund Status Online in India

Do Beneficiaries Pay Taxes on Life Insurance?

Why January Is an Important Month for Saving Tax?

Challan 280 - How to Use Challan 280 to Pay Income Tax

Problems People Face with Tax Returns after a Job Change

What is Section 80C - Explained in Detail

What is the Percentage of Tax Deducted at Source (TDS)?

All about TDS Payment Online & Due Dates

Tax Exemption and Scope of Coverage

Section 80E: Tax Exemption on Interest on Education Loan

Presumptive Taxation for Business and Profession

Understanding Tax Exemptions in ULIP (Old and New)

5 Popular Tax-Saving Schemes in India

How to Save Tax on Salary Arrears?

What are Deferred Savings Plans?

Pradhan Mantri Suraksha Bima Yojana

What is Form 16B?

Income Tax Filing For NRI in India

Tips to plan your savings in 2019

Types of Income Tax Return (ITR) Forms

What is Section 80C Deduction?

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

सुकन्या समृद्धि योजना (SSY) के कर लाभ क्या हैं?

Difference Between Guaranteed and Assured Returns

Have You Considered Term Insurance a Part of Your Tax Planning?

What is Section 80C Deduction Limit?

E-Filing of Income Tax Returns in India

Impact of GST on Life Insurance in India

Section 44AD of Income Tax Act for AY 2021-22

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

A Complete Guide for Filing ITR 3 Form

How to save tax for salaried person?

Difference between Section 80C, 80CCC, 80CCD & 80D

How Much Money This Budget 2019 Can Help You Save

Income Tax Deductions for Disabled Person Under Section 80U

Saving Income tax in 2017 - 18

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

Income Tax Filing Using Multiple Form 16

How To Save Tax Better with 80C

Excess TDS Deduction – Claim TDS Refund

ITR 1: Sahaj Form

Why Tax Planning Should Be an All-year Round Activity

Interest Imposed Under Sections 234A, 234B and 234C

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

Tax Deductions You MUST Know

Tax Benefit of Investing in Term Plan

What is TDS Refund Process?

What Investment Options Come with Tax Incentives?

TDS Due Dates of FY 2020-21 For Return Filing

Home Investment Plan to Buy Dream Home

Tax Benefits of ULIP Plans Available for NRIs

Financial Planning and Best investment options for Housewives

When Should TDS be Deducted and Who is Liable to Deduct it?

What are Direct Taxes? How to Avoid being Overtaxed?

What is Form 16A?

Should one prefer a guaranteed savings plan over monthly income schemes?

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

How to File TDS Return?

Types of Riders in Insurance Policy

What is the TDS Rate on Salary?

How to Check Income Tax Returns Status Onine?

ITR-6: Guide to filing ITR-6 Form online

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

How to Check Income Tax Refund Status Online in India

Investing Lump Sum Amount

How to File Form 16 for Salaried Employees?

Budget 2019: Impact on the Common Man in India

What is ITR & How to File Income Tax Return?

ITR 2 Form – Complete Guide

Sub-sections Under Section 80C of the Income Tax Act, 1961

इनकम टैक्स रिटर्न कैसे फाइल करें?

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

What is the Difference between Form 16 and Form 16A?

Save Income Tax by 31st March: Here Is a Checklist

Income Tax Deduction Under Section 80CCC In India

Insurance and Endowment: Everything You Need to Know!

How to File Income Tax Return without Form 16

How to Get Form 16?

What is the Maximum Maturity Benefit in Assured Savings Plans?

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D