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FORM 10E

Updated on: 17 Feb, 2024 04:28 PM

If you are eligible to claim relief on arrear income under Section 89 (1) read with Rule 21A, you would have to fill and file Form 10E. The form is available on the website of the Income Tax Department and should be filed so that your income tax return can be processed. The form is filled and submitted online, eliminating the need for physical submissions. Your employer might ask you to furnish Form 10E to calculate the appropriate TDS on your salary. Submitting the form to your employer is not mandatory, but submitting it to the income tax department is. You should, therefore, submit Form 10E to claim tax relief available under Section 89(1).

How to File Form 10E Though Income Tax Portal?

  • You should log into your income tax account at the website https://www.incometax.gov.in/iec/foportal/. To log in, you would have to enter your user ID, password, and date of birth incometaxindiaefiling
  • On the main page, choose ‘e-File’ and then choose ‘Income Tax Forms’. Income Tax Forms
  • A new page will open in which you should provide your PAN number and choose ‘Form 10E’ in the ‘Form Name’ section. You would also have to enter the ‘Assessment Year’ and the ‘Submission Mode’ for the form. Form 10E
  • After you provide the details, you will be taken to a new page wherein the instructions for filling up Form 10E will be mentioned. filling up Form 10E
  • You should fill the form as per the instructions and submit it online.

What are the Details Required in Form 10E?

The basic details of taxpayer required for filing Form 10E have been depicted in step by step pictorial representation below

STEP 1 :-

  • Name and address of the employee who is claiming relief under Section 89(1)
  • The residential address of the employee
  • Amount of arrear salary received according to the provisions contained in sub-rule (2) of Rule 21A
  • Amount of gratuity payment received for at least the last 5 years for past services according to the provisions contained in sub-rule (3) of Rule 21A
  • Amount of compensation received from the present or former employer upon termination of employment. This compensation is payable if the employee has rendered at least 3 years of continuous service or if the unexpired duration of the service is at least 3 years. This compensation is paid according to the provisions contained in sub-rule (4) of Rule 21A
  • Amount of commuted pension received according to the provisions contained in sub-rule (5) of Rule 21A

Further details regarding arrears of salary not taxed earlier (as depicted in the picture below) Form 10E

The following details are required to be furnished in the first step

  • Name and address of the employee who is claiming relief under Section 89(1)
  • PAN number of the employee
  • The residential address of the employee
  • Amount of arrear salary received according to the provisions contained in sub-rule (2) of Rule 21A
  • Amount of gratuity payment received for at least the last 5 years for past services according to the provisions contained in sub-rule (3) of Rule 21A
  • Amount of compensation received from the present or former employer upon termination of employment. This compensation is payable if the employee has rendered at least 3 years of continuous service or if the unexpired duration of service is at least 3 years. This compensation is paid according to the provisions contained in sub-rule (4) of Rule 21A
  • Amount of commuted pension received according to the provisions contained in sub-rule (5) of Rule 21A

Further details regarding arrears of salary not taxed earlier (as depicted in the picture above)

STEP 2:-

Add further details as required in Annexures Form 10E - Annexures

  • Annexure 1: Arrears or Advance salary.

    Calculation of Relief u/s 89(1) by providing the following details: Form 10E - Arrears or Advance salary

  • Annexure 2: Details of gratuity.

    For the period of services extending over a period of 5 years or more but not more than 15 years. Form 10E  - Details of gratuity

  • Annexure 2/2A: Details of gratuity.

    For the period of services extending over 15 years and more. Form 10E - Annexure 2/2A

  • Annexure 3: Compensation on termination of employment. Form 10E - Annexure 3
  • Annexure 4: Computation of Pension. Form 10E - Annexure 4

Brief Understanding of Sec. 89(1)

Tax is calculated on your total income earned or received during the year. If you have received any portion of your salary in arrears or in advance, then you are allowed some tax relief under section 89(1).

For a taxpayer, tax liabilities for a Financial Year are calculated from the income earned during that year. Sometimes, that income includes arrears. Usually, tax rates increase with time, which means that you may have to pay higher taxes in such cases. However, the Income Tax Act provides you relief in those situations u/s 89(1).

So, if you receive any arrear salary or family pension, you don’t have to be afraid of the increased incidence of taxation. The Income Tax Act allows you to claim tax reliefs on arrear incomes. You should, therefore, understand how the relief would be calculated and how you can file your tax returns to claim the relief.

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Frequently Asked Questions

Q- Is Form 10E mandatory to file?

Yes, the Income Tax Department has made it mandatory to file Form 10E if you want to claim a tax relief on your arrear income. If the form is not filed, the tax department will send you a notice.


Q- What would be the assessment year if the arrears are received in the financial year 2018-19?

If the arrears are received in the financial year 2018-19, the assessment year would be 2019-20.


Q- Do I need to download and submit Form 10E?

No, there is no need to download Form 10E, as the submission is done online.


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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.