Form 10E- To claim relief under Section 89(1), you must file Form 10E with Income Tax Department. Taxpayers who claim relief u/s 89(1) without filing Form 10E receive notice from the Income Tax Department regarding the same.
Is it mandatory to file Form 10E?
From AY 2015-16 (FY 2014-15) The Income tax department has made it mandatory for the person claiming the relief u/s 89 to file an online Form 10E on the tax department's e-filing website. Those who missed to file Form 10E were not allowed the relief while processing their tax returns and might get the notice for non-filing of Form 10E.
Let’s understand the process to file Form 10E:
Step-1 Go to https://incometaxindiaefiling.gov.in/ and login with your ‘User ID’ (i.e. PAN number),‘Password’ along with 'Captcha Code'.
Step-2 Click on tab titled ‘e-File’ and select ‘Income Tax Forms’ from the drop down menu.
Step-3 Choose ‘Form 10E’- Form for relief u/s 89 from the drop down menu.
Step-4 Fill the relevant Assessment Year & Submission mode and press ‘Continue’ button.
Step-5 You will find the screen shown below with instructions to e-file Form 10E. You can also read the instructions on how to file Form 10E given in the first blue tab and then fill the relevant information by clicking on other tabs.
Step-6 Click on ‘Preview & Submit' button to complete the process.
When in a financial year an employee receives salary in arrears or advance then in order to save your additional tax burden due to delay in receiving income as per section 89(1) relief for income tax has been provided. However, for claiming this relief an employee must have to submit the Form 10E with income tax department.