Got Salary Arrears? File Form 10E or Lose Tax Relief

If you received salary arrears, advance pay, or gratuity in one year that belongs to earlier years, you can reduce your tax burden using Section 89 relief — but only if you file Form 10E on the income tax portal BEFORE submitting your ITR.

Here's what happened: Section 89 of the Income Tax Act allows relief when lump-sum income like arrears or gratuity pushes you into a higher tax slab unfairly.. Form 10E must be filed on the income tax e-filing portal before your ITR — failing to do so means the tax department rejects your Section 89 relief claim entirely.. The ITR system cross-checks whether Form 10E was submitted; if missing, you receive a tax demand notice for the full higher tax amount with no appeal on the relief..

What you should do: Log in to incometax.gov.in, go to e-File > Income Tax Forms > File Income Tax Forms and submit Form 10E before you open your ITR form this season.. Collect your salary slips, Form 16, and arrear breakup showing which financial year each arrear amount actually belongs to — you need this to fill Form 10E correctly.. After Form 10E is submitted, claim the Section 89 relief amount in Schedule 89 inside your ITR; keep the acknowledgement number safe in case of future scrutiny..

Even if your employer already deducted lower TDS expecting Section 89 relief, you STILL must file Form 10E yourself — employer action does not substitute for your own filing.