INCOME TAX RETURN FORM – 10E

Form 10E is used for filing Relief under Section 89(1) by a taxpayer who is receiving salary or pension income in a financial year from more than one employer or from more than one pension paying officer. This form is specifically for calculating relief under Section 89(1) of the Income Tax Act, 1961, when salary or pension is received in advance or in arrears.

Here’s a brief overview of how Form 10E (ITR) works:

1. Multiple Employers or Pension Paying Officers: If an individual has worked for multiple employers during the year, or received pension from multiple pension paying officers, their income may be subject to tax deduction at source (TDS) based on the aggregate income from all sources. However, if tax is deducted at higher rates due to the cumulative income, the taxpayer may claim relief under Section 89(1) of the Income Tax Act.
2. Relief Calculation: Form 10E is used to calculate the relief amount under Section 89(1). The relief is calculated by computing the tax payable both with and without the salary or pension received in advance or in arrears. The difference between the two tax amounts represents the relief amount that can be claimed.
3. Submission with Income Tax Return: Taxpayers who are eligible for relief under Section 89(1) must file Form 10E along with their income tax return for the relevant assessment year. The form should be filled accurately, providing details of salary or pension received in advance or in arrears, along with the computation of relief.
4. Verification: Like other income tax forms, Form 10E requires verification by the taxpayer. The taxpayer must sign and date the form to declare that the information provided is true and correct to the best of their knowledge.
5. Submission Deadline: Form 10E should be filed before submitting the income tax return for the relevant assessment year. Failing to file the form may result in the denial of relief under Section 89(1).

It’s important for taxpayers to understand the provisions of Section 89(1) and the requirements of Form 10E to ensure compliance with the income tax laws and to claim any relief to which they are entitled. Additionally, seeking advice from a tax professional or consulting the official guidance provided by the tax authorities can help in accurate filing and compliance.

BENEFITS OF ITR FORM 10E

1. Tax Relief Calculation: The primary purpose of Form 10E is to calculate relief under Section 89(1) when a taxpayer receives salary or pension income in advance or in arrears, resulting in higher tax deduction at source (TDS) than what would have been deducted if the income had been received regularly.
2. Reduction of Tax Liability: By claiming relief under Section 89(1) through Form 10E, taxpayers can reduce their tax liability for the relevant assessment year. This ensures that they are not unfairly taxed on income received in advance or in arrears, thus preventing double taxation or excessive tax burden.
3. Compliance with Income Tax Laws: Filing Form 10E is essential for taxpayers who are eligible for relief under Section 89(1) to comply with the provisions of the Income Tax Act. Failure to file the form may result in the denial of relief and could lead to penalties or legal consequences for non-compliance.
4. Accurate Income Tax Return Filing: Including Form 10E with the income tax return helps ensure the accuracy of the tax calculation and reporting. By providing details of income received in advance or in arrears and computing relief accordingly, taxpayers can file their returns correctly and avoid discrepancies or audit issues.
5. Claiming Refunds: In cases where excess tax has already been deducted at source due to income received in advance or in arrears, claiming relief through Form 10E can result in a refund of the excess tax amount. This helps taxpayers recover any overpaid tax and improve their cash flow.

DOCUMENTS REQUIRED FOR ITR FORM 10E

1. Personal Information Documents:

• Aadhaar Card or Aadhaar Enrolment Number (mandatory for Indian residents)
  • PAN (Permanent Account Number) Card
  • Address proof (if there are changes from the previous year)

• Income Documents:

• Form 16: Certificate of TDS (Tax Deducted at Source) issued by employers (if applicable)
  • Form 16A/Form 16B/Form 16C: Certificates of TDS for income other than salary (if applicable)
  • Bank statements/passbooks showing interest income
  • Rent receipts or rental agreement for rental income
  • Statements or certificates for income from investments such as mutual funds, stocks, bonds, etc.
  • Statements or certificates for income from fixed deposits, recurring deposits, or savings accounts
  • Any other documents related to income from freelancing, consulting, or other sources

• Deduction Documents:

• Investment proofs for deductions under Section 80C (e.g., life insurance premium receipts, PPF statements, ELSS investments)
  • Investment proofs for deductions under Section 80D (e.g., health insurance premium receipts)
  • Investment proofs for deductions under Section 80E (e.g., education loan interest certificate)
  • Investment proofs for other deductions like Section 80G (donations), Section 80TTA (savings account interest), etc.

• Property Documents (if applicable):

• Sale deed or purchase agreement of property (for capital gains calculation)
  • Home loan statement showing interest and principal repayment details
  • Rental agreement (for rental income from property)

• Tax Payment Documents:

• Challans or receipts for advance tax payments made during the financial year
  • Challans or receipts for self-assessment tax payments made after the end of the financial year
  • Form 26AS: Tax Credit Statement showing details of TDS, advance tax, and self-assessment tax deposited against the PAN

• Other Relevant Documents:

• Details of foreign assets and income (if applicable) for taxpayers falling under the scope of foreign asset reporting
  • Details of any exempt income, agricultural income, or other sources not covered above