Form 10E is mandatory for claiming tax relief under section 89(1) by recalculating taxes for arrears received over two years. Taxpayers must file it online through the income tax department's website prior to submitting their income tax return, using appropriate annexures based on the nature of received amounts. Failure to file Form 10E could result in notices for non-compliance from the tax department.

1. Form
10 E

2. What is the importance of Form
10E?
The Income Tax Department has made it compulsory to file Form 10E to claim relief under Section
89(1).
As per this section, tax relief will be provided by recalculating the tax for the two years- the year to
which the arrears pertain and the year in which the arrears are received.
The taxes are then adjusted under the assumption that the arrears were received in the year in which
they were due.

3. How to File Form 10E?
1. Form 10E is available on the website of the Income Tax Department and must be filed online. The website is www.incometaxindiaefiling.gov.in
2. To claim relief under section 89(1) filing of Form 10E is mandatory
3. Taxpayers who claim relief for the previous financial year but fail to file Form 10E receive a notice from the department for non-compliance
4. Based on nature of the amount received, appropriate annexure need to be selected while filing Form 10E
5. For example, Annexure 1 for salary, Annexure 2 for gratuity, Annexure 3 for compensation on termination of employment, Annexure 4 for commutation
of pension
6. Form 10E should be submitted before filing your income tax return
7. The assessment year to be chosen while filing Form 10E should be the year the arrears pertain to
8. The claim to tax relief by filing this form can be done at the time of submitting tax returns. It is not compulsory to submit it to the employer, though the
employer may ask for confirmation of submission of the Form 10E
9. Acknowledgment of filed Form 10E is not required to be attached while filing Income tax return
10. The tax relief under Section 89(1) is also applicable for those who receive pension in arrears

4. Thank You