About this plan
This plan is designed for salaried individuals who have received salary arrears or advance salary and are eligible to claim tax relief under Section 89(1) of the Income Tax Act. In such cases, filing Form 10E is mandatory before claiming relief in your Income Tax Return. Our expert filing process ensures accurate computation and compliance, helping you reduce tax liability and avoid notice from the Income Tax Department.
Services Included
- Expert Consultation to assess relief eligibility
- Computation of arrear amount and year-wise bifurcation
- Preparation and online filing of Form 10E
- Preparation of Form 10 E with the help of both the Tax Regime.
- Get a dedicated relationship manager during service fulfillment.
- Get Maximum Tax Refund with the accurate working.
- Expert Assisted Tax Filing. | Call 011-45626514
Who Should Buy
How It's Done
This plan is equipped with end-to-end online fulfillment via our expert. No hassle, 100% Digital.
3 Days Estimate
- Upload Documents on Vault
- Review computation sheet 10E
- Get Form 10E filed
Documents Required
FAQs
What is Section 89(1) of the Income Tax Act?
Section 89(1) provides tax relief to salaried individuals who receive salary arrears or advance salary in a lump sum, which pertains to earlier financial years. It helps avoid excess tax burden in the year of receipt.
Who should file ITR with Section 89 relief?
This plan is ideal for:
- Salaried employees who received salary arrears (e.g., due to pay commission revision, promotion, or delayed salary payments)
- Individuals who received advance salary or gratuity
- Anyone who received retrospective pension or leave encashment
Why is Section 89 relief important?
Without claiming Section 89 relief:
- You may be taxed at a higher slab rate because the total income for the year increases artificially due to arrears.
- Relief ensures fair taxation by recalculating tax as if the income was received in the correct year.
What documents are required for claiming Section 89 relief?
You will need:
- Form-16 with arrears clearly mentioned
- Arrear calculation sheet from your employer
- Details of total income of previous years to which arrears relate
- PAN, Aadhaar, bank details
- Form 10E (mandatory for claiming relief)
What is Form 10E and why is it necessary?
Form 10E is a mandatory form that must be filed before filing your ITR to claim relief under Section 89(1). If you fail to file it, the relief may be disallowed, and you could receive a demand notice.
How is relief under Section 89 calculated?
Relief is calculated by:
- Calculating tax on total income (including arrears) in the year of receipt.
- Calculating tax on total income (excluding arrears).
- Calculating tax for previous years by adding arrears relevant to those years.
- The excess tax paid in the current year due to arrears is allowed as relief.
Do I need to file revised returns for past years to claim arrears relief?
No, you only need to calculate the impact of arrears on previous years’ tax rates. Filing Form 10E along with your current year’s ITR is sufficient.
In which ITR form is Section 89 relief claimed?
- Usually ITR-1 or ITR-2, depending on your income sources
- The relief is shown in the “Schedule S” and “Schedule TTI” sections
- Form 10E must be submitted separately under the “e-file” tab before filing your return
What if I don’t file Form 10E but claim relief in ITR?
Your claim under Section 89 will likely be rejected, and you may receive a demand notice from the Income Tax Department. Filing Form 10E is mandatory.
How soon should I file ITR if I have arrears?
You must file your ITR before the due date (usually July 31) to claim the relief and avoid late fees, interest, or loss of refund eligibility.
Can I claim relief for arrears received from private companies?
Yes, Section 89 applies to both government and private sector employees.
How long does it take to file ITR with Section 89 relief?
Once all documents are submitted, it usually takes 2–3 working days to:
- Prepare your Form 10E
- Compute exact tax relief
- File your ITR correctly
Is this applicable for pensioners too?
Yes. Pensioners who receive arrears of pension from previous years can also claim relief under Section 89(1) and must file Form 10E.
Can I file Form 10E after filing my ITR?
Technically, Form 10E should be submitted before filing the ITR. If you forget, file it as soon as possible and revise your ITR to correctly reflect the relief. Delayed submission may lead to rejection of the relief claim.
Can I claim relief for more than one year of arrears at once?
Yes. If you receive arrears that pertain to multiple financial years, you can claim relief for all those years together using Form 10E. The form allows you to specify income year-wise.
Where can I check if my Form 10E has been successfully filed?
You can check the status of your Form 10E submission by logging in to https://www.incometax.gov.in and going to:
e-File → Income Tax Forms → View Filed Forms