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10e salary arrears exemptions

Ravinder Chary (Practice) (1 Points)

02 March 2023

salary arrears exemption for it please clarify

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171758 Points)
Replied 02 March 2023

What is Form 10E?

It is mandatory to fill out Form 10E if you want to claim tax relief under Section 89(1) of the Income Tax Act 1961. Under Section 89(1) of the Act, you are eligible to claim tax relief for delayed salary received in the form of arrears. Any arrears received are reflected in Part B of your Form 16.

Form 10E is required for furnishing particulars of received income under Section 192(2A) and can be filed by a Government servant or any employee working in a company, co-operative society, university, local authority, institution, association, or body.

In case of receipt in arrears or advance of any sum in the nature of salary, relief u/s 89 can be claimed. In order to claim such relief, the assessee has to file Form 10E. The Form must be filed before filing the Return of Income.

2. Do I need to download and submit Form 10E?
No, there is no need to download Form 10E as the submission can be done online after log in to e-Filing portal.

3. When should I file Form 10E?
Form 10E has to be filed before filing your Income Tax Return.

4. Is Form 10E mandatory to file?
Yes, it is mandatory to file Form 10E if you want to claim a tax relief on your arrear / advance income.

5. What will happen if I fail to file Form 10E but claim relief u/s 89 in my ITR?
If you fail to Form 10E but claim relief u/s 89 in your ITR, your ITR will be processed but the relief claimed u/s 89 will not be allowed.

6. How do I know that ITD has disallowed the relief claimed by me in my ITR?
In case the relief claimed by you u/s 89 is disallowed, the same shall be communicated by the ITD through an intimation u/s 143(1) after the processing your ITR is complete.

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Vinoth Kumar (7 Points)
Replied 06 February 2024

Is relief under Section 89 1 available under new tax regime?

Vinoth Kumar (7 Points)
Replied 06 February 2024

dditional Information on Section 89(1) of Income Tax Act, 1961

Apart from the basic provisions of Section 89(1) discussed above, there are some additional details and exceptions that taxpayers should keep in mind while claiming relief under this section.

The relief under Section 89(1) can be claimed only if the total income of the employee for the financial year in which the arrears or advance salary is received is higher than the total income of the employee in the year or years to which the arrears or advance salary pertains.
The relief under Section 89(1) cannot be claimed by employees who have opted for the new tax regime under section 115BAC.

https://margcompusoft.com/m/section-891-income-tax-act/