Form 39 Income Tax Rules 2026 pdf download and Key points
FORM NO. 39
[See rule 73]
Form for claiming relief under section 157(1) of the Act in case of receipt of additional salary, or gratuity or Retrenchment Compensation or commutation of pension
Under the Income-tax Rules, 2026, Form No. 39 replaces the erstwhile Form 10E. It is governed by Section 157(1) of the Income-tax Act, 2025, and Rule 73 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 39:
1. Purpose of the Form Form 39 is used by an individual taxpayer to claim tax relief when they receive salary in advance or in arrears, or upon the receipt of lump-sum amounts such as gratuity, retrenchment compensation, or commutation of pension. The primary purpose of this form is to neutralize the higher tax burden that arises from the “bunching” of such income in a single tax year.
2. Applicability (Who Should File) The form must be filed by any individual taxpayer (employee) who has received:
- Additional salary or additional family pension (arrears or advance).
- Gratuity for past services.
- Retrenchment compensation.
- Commutation of pension.
In order to claim this relief directly at the TDS stage, the employee (including Government servants) must furnish the particulars of Form 39 to their employer/deductor.
3. Frequency and Due Dates
- For ITR filing: It must be filed on or before the due date specified under section 263(1)(c) of the Act for claiming the relief in the return of income. It is advisable to file it at least three months prior to claiming the relief in the ITR.
- For TDS relief: To enable the employer to consider the relief while deducting tax at source, the form should be furnished to the deductor well before the end of the relevant Tax Year.
4. Structure of the Form Form 39 is divided into two main parts:
- Part A (Basic Information): Captures the taxpayer’s basic details including Name, Address, PAN, Residential Status, Email ID, Contact Number, and the relevant Tax Year.
- Part B (Computation of Relief): Contains details of the specific receipts with uniform computation tables and auto-populated relief calculations for each category (e.g., additional salary, gratuity, pension, etc.).
5. Improvements Over the Old Form 10E
- Smart Interface: Form 39 resolves the repetitive data entry issues of Form 10E through a technology-driven interface featuring auto-population of data, real-time validations, standardized drop-downs, and date pickers.
- Clear Computation: Unlike the old form, Form 39 includes explicit, uniform computation tables with structured formulas that automatically calculate the total income and tax relief. This eliminates confusion and reduces manual errors.
6. Mode of Filing and Prerequisites
- Online Only: Form 39 must be filed electronically on the Income Tax e-Filing portal; offline submission is not permitted.
- Verification: It must be e-verified by the employee using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).
- Mandatory PAN: The form cannot be submitted without a valid PAN.
- No Edits Allowed: Once the form is submitted and the acknowledgment is generated, it cannot be edited. Taxpayers must ensure correctness before submission.
7. Single Form for Multiple Receipts If an individual receives different types of lump-sum receipts during the year (for instance, both gratuity and salary arrears), they can claim relief for all of them in a single Form 39 by filling out the respective distinct sections.
8. Mandatory Documents While no documents are required to be attached or uploaded directly with Form 39, the taxpayer should keep the following documents handy to accurately compute the relief:
- Break-up of the receipts for which relief is being claimed.
- TDS Certificates (Form 130 or Form 16) and Annual Information Statements (Form 168 or Form 26AS).
- Income Tax Returns (ITRs) and computation of income/tax liability for both the current year and the earlier tax years to which the arrears relate.
- Proof of the lump-sum receipts (e.g., employer letters, pension orders, retrenchment orders).
9. Transition Rule for Assessment Year 2026-27 It is important to note that for income earned during FY 2025-26 (which corresponds to AY 2026-27 under the old Act), taxpayers must still use the old Form 10E. The new Form 39 strictly applies for relief claimed from Tax Year 2026-27 onwards (income earned from April 1, 2026, onwards) under the Income-tax Act, 2025.