Form 10E, Download Income Tax Form 10E in PDF Format

FORM NO. 10E Form for claiming relief under section 89(1) by a Government servant or an employee. FORM NO. 10E Section 192(2A) provides that in respect of salary, payments to employees of Government company, co-operative society, local authority, University, institution, association or body, deduction of tax at source may be made after allowing relief under 89(1), if allowable.

(1) Any person responsible for paying any income chargeable under the head “Salaries” shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.

(1A) Without prejudice to the provisions contained in sub-section (1), the person responsible for paying any income in the nature of a perquisite which is not provided for by way of monetary payment, referred to in clause (2) of section 17, may pay, at his option, tax on the whole or part of such income without making any deduction therefrom at the time when such tax was otherwise deductible under the provisions of sub-section (1).

(1B) For the purpose of paying tax under sub-section (1A), tax shall be determined at the average of income-tax computed on the basis of the rates in force for the financial year, on the income chargeable under the head “Salaries” including the income referred to in sub-section (1A), and the tax so payable shall be construed as if it were, a tax deductible at source, from the income under the head “Salaries” as per the provisions of sub-section (1), and shall be subject to the provisions of this Chapter.

(2) Where, during the financial year, an assessee is employed simultaneously under more than one employer, or where he has held successively employment under more than one employer, he may furnish to the person responsible for making the payment referred to in sub-section (1) (being one of the said employers as the assessee may, having regard to the circumstances of his case, choose), such details of the income under the head “Salaries” due or received by him from the other employer or employers, the tax deducted at source therefrom and such other particulars, in such form and verified in such manner as may be prescribed, and thereupon the person responsible for making the payment referred to above shall take into account the details so furnished for the purposes of making the deduction under sub-section (1).

(2A) Where the assessee, being a Government servant or an employee in a company, co-operative society, local authority, university, institution, association or body] is entitled to the relief under sub-section (1) of section 89, he may furnish to the person responsible for making the payment referred to in sub-section (1), such particulars, in such form and verified in such manner as may be prescribed, and thereupon the person responsible as aforesaid shall compute the relief on the basis of such particulars and take it into account in making the deduction under sub-section (1).

Explanation.—For the purposes of this sub-section, “University” means a University established or incorporated by or under a Central, State or Provincial Act, and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a University for the purposes of that Act.

(2B) Where an assessee who receives any income chargeable under the head “Salaries” has, in addition, any income chargeable under any other head of income (not being a loss under any such head other than the loss under the head “Income from house property”) for the same financial year, he may send to the person responsible for making the payment referred to in sub-section (1) the particulars of—

(a)  such other income and of any tax deducted thereon under any other provision of this Chapter;

(b)  the loss, if any, under the head “Income from house property”,

in such form and verified in such manner as may be prescribed, and thereupon the person responsible as aforesaid shall take—

 (i)  such other income and tax, if any, deducted thereon; and

(ii)  the loss, if any, under the head “Income from house property”,

also into account for the purposes of making the deduction under sub-section (1) :

Provided that this sub-section shall not in any case have the effect of reducing the tax deductible except where the loss under the head “Income from house property” has been taken into account, from income under the head “Salaries” below the amount that would be so deductible if the other income and the tax deducted thereon had not been taken into account.

(2C) A person responsible for paying any income chargeable under the head “Salaries” shall furnish to the person to whom such payment is made a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided to him and the value thereof in such form and manner as may be prescribed

(3) The person responsible for making the payment referred to in sub-section (1)or sub-section (1A) or sub-section (2) or sub-section (2A) or sub-section (2B)] may, at the time of making any deduction, increase or reduce the amount to be deducted under this section for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the financial year.

(4) The trustees of a recognised provident fund, or any person authorised by the regulations of the fund to make payment of accumulated balances due to employees, shall, in cases where sub-rule (1) of rule 9 of Part A of the Fourth Schedule applies, at the time an accumulated balance due to an employee is paid, make therefrom the deduction provided in rule 10 of Part A of the Fourth Schedule.

(5) Where any contribution made by an employer, including interest on such contributions, if any, in an approved superannuation fund is paid to the employee, tax on the amount so paid shall be deducted by the trustees of the fund to the extent provided in rule 6 of Part B of the Fourth Schedule.

(6) For the purposes of deduction of tax on salary payable in foreign currency, the value in rupees of such salary shall be calculated at the prescribed rate of exchange.

FORM NO. 10E

[See rule 21AA]

        Form for furnishing particulars of income under section 192(2A) for the year ending 31st March, ___________for claiming relief under section 89(1) by a Government servant or an employee in a company, co-operative society, local authority, university, institution, association or body


 

1. Name and address of the employee

 

2. Permanent account number

 

3. Residential status

Particulars of income referred to in rule 21A of the Income tax Rules, 1962, during the previous year relevant to assessment year

 

1.

(a)

Salary received in arrears or in advance in accordance with the provisions of sub-rule (2) of rule 21A

Rs.

 

(b)

Payment in the nature of gratuity in respect of past services, extending over a period of not less than 5 years in accordance with the provisions of sub-rule (3) of rule 21A

(c)

Payment in the nature of compensation from the employer or former employer at or in connection with termination of employment after continuous service of not less than 3 years or where the unexpired portion of term of employment is also not less than 3 years in accordance with the provisions of sub-rule (4) of rule 21A

(d)

Payment in commutation of pension in accordance with the provisions of sub-rule (5) of rule 21A

 

2.

Detailed particulars of payments referred to above may be given in Annexure I, II, IIA, III or IV, as the case may be




Signature of the employee

Verification

I___________do hereby declare that what is stated above is true to the best of my knowledge and belief.

Verified today, the



day of

Place

Date

Signature of the employee

ANNEXURE I

[See item 2 of Form No. 10E]

ARREARS OR ADVANCE SALARY

1.

Total income (excluding salary received in arrears or advance)

 

2.

Salary received in arrears or advance

 

3.

Total income (as increased by salary received in arrears or advance)[Add item 1 and item 2]

 

4.

Tax on total income (as per item 3)

 

5.

Tax on total income (as per item 1)

 

6.

Tax on salary received in arrears or advance [Difference of item 4 and item 5]

 

7.

Tax computed in accordance with Table “A” [Brought from column 7 of Table “A”]

 

8.

Relief under section 89(1) [Indicate the difference between the amounts mentioned against items 6 and 7]

 

 

TABLE “A”

[See item 7 of Annexure I]

Previous year(s)

Total income of the relevant previous year

(Rs.)

Salary recieved in arrears or advance relating to the relevant previous year as mentioned in column(1)

(Rs.)

Total income (as increased by salary received in arrears or advance) of the relevant previous year mentioned in column(1) [Add columns (2) and (3)] (Rs.)

Tax on total income [as per column(2)]

(Rs.)

Tax on total income [as per column(4)]

(Rs.)

Difference in tax [Amount under column (6) minus amount under column (5)]

(Rs.)

1

2

3

4

5

6

7

 

ANNEXURE II

[See item 2 of Form No. 10E]

GRATUITY

Past services extending over a period of 5 years or more but less than 15 years

1.

Gratuity received

 

2.

Total income (including gratuity)

 

3.

Tax on total income mentioned against item 2

 

4.

Average rate of tax applicable on total income [Divide amount mentioned against item 3 by amount mentioned against item 2]

 

5.

Tax payable on gratuity by applying the average rate of tax [Multiply average rate of tax mentioned against item 4 with amount of gratuity mentioned against item 1]

 

6.

Total income of two previous years immediately preceding the previous year in which gratuity is received

(i)

(ii)

 

7.

Add one-half of the gratuity mentioned against item 1 in the total income of each of the two preceding previous years mentioned against item 6


(i)

(ii)

 

8.

Tax on total income of each of the preceding previous years mentioned against item 7

(i)

(ii)

 

9.

Average rate of tax on the total income of each of the two preceding previous years as increased by ½ of gratuity calculated for that year as mentioned against item 7

[Divide the amounts mentioned against items 8(i) and 8(ii) by the amount mentioned against items 7(i) and 7(ii) respectively]

(i)

(ii)

 

10.

Average of average rates of tax mentioned against item 9 [Add the averages of tax mentioned against items 9(i) and (ii) and divide it by 2]

 

11.

Tax payable on gratuity by applying the average of average rates of tax [Multiply the average against item 10 by the amount of gratuity mentioned against item 1]

 

12.

Relief under section 89(1) [Indicate the difference between the amounts mentioned against items 11 and 5]

 

 

ANNEXURE IIA

[See item 2 of Form No. 10E]

GRATUITY

Past services extending over a period of 15 years and more

1.

Gratuity received

 

2.

Total income (including gratuity)

 

3.

Tax on total income mentioned against item 2

 

4.

Average rate of tax applicable on total income [Divide amount mentioned against item 3 by amount mentioned against item 2]

 

5.

Tax payable on gratuity by applying the average rate of tax [Multiply average rate of tax mentioned against item 4 with amount of gratuity mentioned against item 1]

 

6.

Total income of three previous years immediately preceding the previous year in which gratuity is received

(i)

(ii)

(iii)

 

7.

Add one-third of the gratuity mentioned against item 1 in the total income of each of the three preceding previous years mentioned against item 6

(i)

(ii)

(iii)

 

8.

Tax on total income of each of the preceding previous years mentioned against item 7

(i)

(ii)

(iii)

 

9.

Average rate of tax on the total income of each of the three preceding previous years as increased by one-third of gratuity calculated for that year as mentioned against item 7 [Divide the amounts mentioned against items 8(i), 8(ii) and 8(iii) by the amount mentioned against items 7(i), 7(ii) and 7(iii) respectively]

(i)

(ii)

(iii)

 

10.

Average of average rates of tax mentioned against item 9 [Add the averages of tax mentioned against items 9(i) to (iii) and divide it by 3]

 

11.

Tax payable on gratuity by applying the average of average rates of tax [Multiply the average against item 10 by the amount of gratuity mentioned against item 1]

 

12.

Relief under section 89(1) [Indicate the difference between the amounts mentioned against items 11 and 5]

 

ANNEXURE III

COMPENSATION ON TERMINATION OF EMPLOYMENT

Condition: After continuous service of three years and where unexpired portion of term of employment is also not less than three years

1.

Compensation received

 

2.

Total income (including compensation)

 

3.

Tax on total income mentioned against item 2

 

4.

Average rate of tax applicable on total income [Divide amount mentioned against item 3 by amount mentioned against item 2]

 

5.

Tax payable on compensation by applying the average rate of tax [Multiply average rate of tax mentioned against item 4 with amount of compensation mentioned against item 1]

 

6.

Total income of three previous years immediately preceding the previous year in which compensation is received

(i)

(ii)

(iii)

 

7.

Add one-third of the compensation mentioned against item 1 in the total income of each of the three preceding previous years mentioned against item 6

(i)

(ii)

(iii)

 

8.

Tax on total income of each of the preceding previous years mentioned against item 7

(i)

(ii)

(iii)

 

9.

Average rate of tax on the total income of each of the three preceding previous years as increased by one-third of compensation calculated for that year as mentioned against item 7

[Divide the amount mentioned against items 8(i), 8(ii) and 8(iii) by the amount mentioned against items 7(i), 7(ii) and 7(iii) respectively]

(i)

(ii)

(iii)

 

10.

Average of average rates of tax mentioned against item 9 [Divide by three, the total of averages of tax mentioned against items 9(i) to (iii)]

 

11.

Tax payable on compensation by applying the average of average rates of tax [Multiply the average against item 10 by the amount of compensation mentioned against item 1]

 

12.

Relief under section 89(1) [Indicate the difference between the amounts mentioned against items 11 and 5]

 

 

ANNEXURE IV

COMMUTATION OF PENSION

1.

Amount in commutation of pension received

 

2.

Total income (including amount in commutation of pension)

 

3.

Tax on total income mentioned against item 2

 

4.

Average rate of tax applicable on total income

[Divide amount mentioned against item 3 by amount mentioned against item 2]

 

5.

Tax payable on amount in commutation of pension by applying the average rate of tax

[Multiply average rate of tax mentioned against item 4 with amount in commutation of pension mentioned against item 1]

 

6.

Total income of each of the three previous years immediately preceding the previous year in which amount in commutation of pension is received

(i)

(ii)

(iii)

 

7.

Add one-third of the amount in commutation of pension mentioned against item 1 in the total income of each of the three preceding previous years mentioned against item 6

(i)

(ii)

(iii)

 

8.

Tax on total income of each of the preceding previous years mentioned against item 7

(i)

(ii)

(iii)

 

9.

Average rate of tax on the total income of each of the three preceding previous years as increased by one-third of the amount in commutation of pension calculated for that year as mentioned against item 7


[Divide the amount mentioned against items 8(i), 8(ii) and 8(iii) by the amount mentioned against items 7(i),7(ii) and 7(iii), respectively]

(i)

(ii)

(iii)

 

10.

Average of average rates of tax mentioned against item 9

[Divide by three, the total of averages of tax mentioned against items 9(i) to (iii)]

 

11.

Tax payable on amount in commutation of pension by applying the average of average rates of tax

[Multiply the average against item 10 by the amount in commutation of pension mentioned against item 1]

 

12.

Relief under section 89(1)

[Indicate the difference between the amounts mentioned against items 11 and 5]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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