Form 10E is an income tax form used to claim relief under section 89(1) of the Income Tax Act, 1961. This relief is applicable in cases where an individual receives arrears of salary or receives salary in advance in a lump sum.
The relief is provided to ensure that the individual is not taxed at a higher rate due to the receipt of arrears or lump sum payment. To claim this relief, the individual needs to file Form 10E with the Income Tax Department.
Form 10E requires the individual to provide details of the salary received in the current year, the arrears received in the current year, the salary received in the earlier years for which relief is claimed, and the tax paid in the earlier years. The form also requires the individual to calculate the relief amount and provide a detailed calculation.
The relief under section 89(1) can be claimed by individuals, Hindu Undivided Families (HUFs), and other taxpayers. The relief is available for both government and private sector employees.
It is important to note that Form 10E needs to be filed before filing the income tax return for the relevant year. The form can be filed online through the Income Tax Department's e-filing portal or by submitting a physical copy of the form to the relevant income tax office.
Filing Form 10E can help individuals claim the relief they are entitled to and reduce their tax liability. It is important to ensure that the form is filed accurately and within the specified time limit to avoid any penalties or late fees.