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7th Pay Commission: Know How to File Form 10E To Claim Tax Relief On Salary Arrears

August 25, 2022
Bharat Times

The central government employees receive arrears in salaries and allowances after the implementation of the 7th Pay Commission recommendations. In case you have received past dues like salary arrears or pension amounts in the current year, you may be liable to pay a higher tax due to changes in tax slabs. But central government employees who have received salary arrears can claim relief under Section 89 of the Income Tax Act.

Under Section 89 (1) of the Act, a individual can claim tax relief on receiving salary in arrears or in advance or receipt of family pension in arrears. In order to claim relief, government employees must file form 10E online on the Income Tax e-filing portal. Also, note that taxpayers claiming relief under Section 89 without submission of Form 10E may get a notice from the Income Tax Department. Remember, after submitting Form 10E, it’s mandatory to mention the details under the tax relief column in your ITR filing to get the refund.

Here’s how to file Form 10E online

  • Government employees can file form 10E through the e-filing portal of the income tax department.

  • Firstly, login to http://www.incometax.gov.in

  • Then click on the e-File tab and select “tax Exemption and Reliefs/Form 10E” from the list of forms.

  • Here you need to select the Assessment Year and click on continue.

  • Form 10E contains 5 Annexures for different types of arrears. You should select Annexure-I, which is for salary received in advance or arrears.

  • Form 10E will calculate the amount of tax relief automatically available under Section 89.

  • After filing Form 10E, you need to claim it in your Income Tax Return (ITR) filing to get the money. Mention these details under the Tax Relief column in your ITR.

In early August, Minister of State for Finance Pankaj Chaudhary informed Lok Sabha that the centre was not considering setting up 8th Pay Commission for central government employees.

“No such proposal is under consideration with the government for constitution of 8th Central Pay Commission for the central government employees,” Chaudhary said in a written reply to a question if the government proposes to ensure timely constitution of Pay Commission for central government employees so that it could be implemented on January 1, 2026, reported PTI.

The government had set up 7th Pay Commission in February, 2014. The recommendations of the panel were effective from January 1, 2016.

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