Applicability and process of filing Form 10E

By | October 11, 2025
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Applicability and process of filing Form 10E

  • Purpose of Form 10E [00:03]: This video explains the applicability and process of filing Form 10E under Section 89 of the Income Tax Act. This form is used to claim tax relief when an assessee receives salary in arrears or in advance, or certain other lump sum payments.
  • Importance of Filing Form 10E [00:24]:
    • It’s advisable to file Form 10E before filing your Income Tax Return (ITR).
    • If Form 10E is not filed, the ITR will be processed, but the relief claimed under Section 89 will not be allowed.
    • Therefore, filing Form 10E is mandatory to claim tax relief on arrears or advance salary income.

 

Who Should File Form 10E

 

  • Objective of Section 89 [00:52]: Section 89 is primarily designed to reduce the tax burden that might arise when an individual receives lump sum payouts (pertaining to different assessment years) in a single assessment year.
  • Examples of Lump Sum Payouts Requiring Form 10E [01:07]:
    • Salary received in arrears or in advance: Annexure 1 of Form 10E [01:15].
    • Gratuity received:
      • For service over 5 years but less than 15 years: Annexure 2 of Form 10E [01:23].
      • For service of 15 years or longer: Annexure 2A of Form 10E [01:37].
    • Compensation on termination of employment: Annexure 3 of Form 10E [01:44].
    • Commutation of pension: Annexure 4 of Form 10E [01:52].

 

Step-by-Step Process of Filing Form 10E

 

  • Prerequisites [02:08]: You must be a registered user on the e-filing portal with a valid User ID and password.
  • 1. Login and Navigate to Form 10E [02:15]:
    • Log in to the e-filing portal.
    • Go to “e-File” menu > “Income Tax Forms” > “File Income Tax Forms”.
    • In the category “Persons without Business or Professional Income,” you will find “Form 10E – Tax Exemptions and Relief.” You can also search for “Form 10E” in the search box.
    • Click “File Now” [02:42].
  • 2. Select Assessment Year and Annexure [02:42]:
    • Select the relevant Assessment Year and click “Continue.”
    • Read the list of documents that help in faster filing, then click “Let’s Get Started” [02:51].
    • Select the relevant Annexure applicable to your income particulars (e.g., Annexure 1 for arrears/advance salary, Annexure 2/2A for gratuity, Annexure 3 for compensation, Annexure 4 for pension commutation). Click “Continue” [02:58].
  • 3. Confirm Personal Information [03:23]:
    • Confirm your personal information and select your residential status. If details are incorrect, edit them in the “My Profile” section. Ensure all mandatory details, including residential status, are complete. Click “Save” [03:32].
  • 4. Fill in Applicable Annexure Details [03:49]:
    • Annexure 1 (Arrears Salary/Family Income): Enter details of arrears salary and click “Save” [03:59].
    • Advance Salary: Provide details of salary/family pension received in advance relating to different previous years. Click “Add Details” and “Save” [04:07].
    • Gratuity: Select the radio button for years of service with the previous employer, enter gratuity income details, and click “Save” [04:23].
    • Compensation on Termination of Employment: Enter details of compensation on termination of employment to calculate relief amount, and click “Save” [04:39].
    • Commutation of Pension: Enter details of commutation of pension received to calculate the relief amount, and click “Save” [04:54].
  • 5. Verification [05:08]:
    • The annexures relevant to your selections will be visible.
    • Select the checkbox, enter the place, and click “Save” [05:22].
  • 6. Preview and e-Verify [05:29]:
    • Once all tabs are confirmed, click “Preview.”
    • Verify the details in the preview. You can edit if needed.
    • If details are correct, verify the form using any of the available e-verification methods (e.g., Aadhaar OTP, DSC, EVC).
  • 7. Submission Confirmation [05:42]:
    • After e-verification, Form 10E will be submitted.
    • An acknowledgment number will be generated and communicated to your registered email ID and mobile number.

 

Disallowance of Relief

 

  • Communication of Disallowance [05:57]: If the relief claimed under Section 89 is disallowed by the Income Tax Department, it will be communicated through an intimation under Section 143(1) after the ITR processing is complete.

For more details, you can visit the Income Tax Department’s website at www.incometax.gov.in or contact their helpline numbers.