If an individual is in receipt of arrears of salary or advances salary, then his tax amount might increase due to past dues paid in the current year. The Income-tax Act provides relief to individuals in such cases. Section 89 provides relief when salary is paid in arrears or in advance.
For availing relief u/s 89, an individual is first required to fill form 10E. The relief u/s 89 will be allowed only if this form is filled before filing of return of income. Relief u/s 89 is available only for those who receive any arrears of salary, salary in advance, gratuity etc, which otherwise was receivable in those years and on account of such receipt in the current year has changed the taxation slab of current year to higher rate.
Following is a step by step guide to the filing of form 10E:
1. Login to new income tax portal https://www.incometax.gov.in/iec/foportal
2. Under e-File tab select Income Tax Forms, in it, select File Income tax forms
3. Select relevant Assessment year:
4. Select Form 10E under Persons without Business/Professional Income :
5. Select Let’s Get Started :
6. Select correct box :
7. Fill in details in each tab:
8. After filling in details click on preview: