Form 10E is necessary when you receive the salary in arrears. Let’s not go into the taxation jargons and complicated words, a person needs to file Form 10E when he/she receives the wages in arrears. The person needs to submit that to save the taxes. Receiving salaries or pensions in arrears will not move your tax slab if you file the Form 10E. To know more about this Form, 10E keep reading the article.
What is Form 10E?
Form 10E comes into picture when an individual receives the pension or salary in arrears. It is used to claim tax benefits under the Section 89(1). Due to the significant amount coming all together will make you worry that it’ll increase the tax burden, but since it is the past salaries which are being paid now you can claim the tax benefits by submitting Form 10E. Income tax department of India has made it mandatory to file the Form 10E when salaries and pensions are received in arrears.
What can happen if I don’t file Form 10E?
Since the assessment year of 2014-15 income tax department of India have made it mandatory to file the Form 10E. In case an individual misses to file the benefits under section 89, revenue department will send you an official notice warning you about your tax liabilities. It is wise to fill this form on time to not only stay away from notice but claim a significant amount of tax benefits from the government. To make filling form 10e easier, we have done this little tutorial explaining how to file it.
How to File Form 10E online?
Filing a Form 10E is much simpler and easier because of the recent technological advancement by the government of India. Here is the step by step guide on how to file form 10E online.
- Visit the official website of Income tax department of India – click here.
- To log in you will need the username and password with your date of birth.
- After successful login, you will be redirected to the dashboard, where you can find a link called “e-file.”
- Next step after locating the link is to click on “Prepare and Submit Online Form.”
- Make sure that you do not select the ITR forms.
- You will be redirected to next page which will ask for your PAN card details and assessment year along with Form number. In our case, the Form number will be 10E.
- Selecting the Form 10E will result in you being redirected to next screen where you will be provided with easy to understand instructions on how to file the Form 10E.
Make sure you follow all the instructions given on the page. Be ready will all the details of your salary and PAN card to make the process of filing smother. Another thing to keep in mind is that selection of proper assessment year, to make it less confusing choose the year in which you got salaries in your bank account. If the salary was transferred to you in 2015 then assessment year 2015-16.
Commonly Asked Questions
When should I submit Form? Before or After Tax Return? To claim the tax benefits, the Form 10E must be filed BEFORE income tax return. If you don’t file it, you will receive notice from income tax department.
A Copy of 10E must be attached to return? Yes, it is required to attach the copy of 10E with income tax return.
Should I submit Form 10E to my employer? It is not required by law to provide copy of Form, but your employer might ask for a copy.
Hope you liked the our little guide, if have any further questions try them in comments. We will try our best to provide you with solutions.