What is form 10E and how to file it?

What is Form 10E?

Sometimes, an individual may receive salary that relates to an earlier year or receive salary in advance. Receiving such income in a single financial year may increase the taxpayer's total income and result in a higher tax liability.

Section 89 of the Income-tax Act, 1961 provides relief in specified cases where income such as salary arrears or advance salary results in an additional tax burden because income relating to different years is received in one year.

To claim relief under Section 89 for FY 2025-26 / AY 2026-27, the taxpayer is required to furnish Form 10E electronically through the Income Tax e-Filing portal.

Form 10E may contain particulars relating to:

• Salary received in arrears or in advance
• Family pension received in arrears
• Gratuity for past services
• Compensation received on termination of employment
• Commutation of pension

The availability and amount of relief depend on the nature of the receipt and the applicable conditions.

Is filing Form 10E mandatory?

Yes. If you wish to claim relief under Section 89, Form 10E must be furnished electronically.

If relief under Section 89 is claimed in the Income Tax Return without furnishing Form 10E, the relief may not be allowed while processing the return.

Therefore, it is advisable to furnish Form 10E before filing the Income Tax Return in which relief under Section 89 is being claimed.

How to file Form 10E on the Income Tax e-Filing portal

Step 1: Log in to the Income Tax e-Filing portal

Visit the Income Tax e-Filing portal and log in using your PAN/User ID and password.

Step 2: Go to File Income Tax Forms

After logging in, navigate to: e-File > Income Tax Forms > File Income Tax Forms.

Step 3: Select the appropriate Assessment Year

Choose the Assessment Year for which you want to claim relief under Section 89.

For example, if the relevant income was received during FY 2025-26, select AY 2026-27.

Step 4: Search for and select Form 10E

Locate and select Form 10E – Form for furnishing particulars of income for claiming relief under Section 89.

Step 5: Click on “Let's Get Started”

After selecting Form 10E, click Let's Get Started to proceed.

Step 6: Select the applicable nature of income

Select the appropriate option depending on the income for which relief is being claimed, such as salary arrears, advance salary, gratuity, compensation on termination or commuted pension.

Step 7: Enter the required details

Complete all applicable sections of Form 10E. Depending on your case, you may need to provide details such as:

• Amount of salary received in arrears or advance
• Financial year to which the income relates
• Total income for the relevant earlier year
• Tax payable for the relevant years
• Current-year income and tax details

Ensure that the figures entered are consistent with your salary records, Form 16 and Income Tax Return.

Step 8: Preview the form

After completing the applicable sections, click Preview and carefully verify the information entered.

Check the income amounts, relevant financial years and relief computation before submitting the form.

Step 9: Submit and e-Verify Form 10E

Submit and e-Verify Form 10E using one of the verification methods available on the Income Tax e-Filing portal.

After successful submission, an acknowledgement or transaction reference will be generated. Keep it for your records.

Important points to remember

• Receiving salary arrears does not automatically mean that you will receive relief under Section 89.
• Relief is generally available where bunching of income relating to different years results in an additional tax burden.
• Form 10E should be furnished before claiming the corresponding relief in the Income Tax Return.
• Select the correct Assessment Year while filing Form 10E.
• Ensure that the amount of relief claimed in the Income Tax Return is consistent with the applicable computation.
• Keep salary statements, Form 16 and year-wise arrear calculations for your records.

Form 10E vs Form 39 under the Income-tax Act, 2025

Official Sources and References

• Income Tax Department – Section 89 of the Income-tax Act, 1961
• Income Tax e-Filing Portal – Form 10E filing guidance and FAQs
• Income-tax Act, 2025 – Section 157
• Income-tax Rules, 2026 – Rule 73 and Form 39

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