Got salary or DA arrears? Claim tax relief with Form 10E (now Form 39 from Tax Year 2026-27)
When salary, family pension, gratuity, retrenchment compensation or commuted pension is paid in arrears or in advance, it is taxed in the year you receive it. That can push you into a higher slab. Relief under section 89 (now section 157 of the 2025 Act) takes away that extra tax. To claim it, file Form 10E online on incometax.gov.in before your ITR for AY 2026-27. From Tax Year 2026-27, use the new Form No. 39, filed by the return due date. No form, no relief: if you claim relief without filing it, the department disallows it in the 143(1) intimation.
Key facts Last verified: 9 Oct 2026
| Item | Details | Source |
|---|---|---|
| Purpose | Removes the extra tax caused by arrears or advance salary bunched into one year | Income Tax Dept — Income Tax Forms FAQ |
| Covers | Arrears or advance of salary, family pension, gratuity, compensation on termination, commutation of pension | Income Tax Dept — Senior Citizens (AY 2026-27) |
| AY 2026-27 (income of FY 2025-26) | Form 10E under section 89 of the 1961 Act | Income Tax Dept — Income Tax Forms FAQ |
| Tax Year 2026-27 onwards | Form No. 39 under section 157 of the 2025 Act, by the due date u/s 263(1)(c) | Income Tax Dept — Income Tax Forms FAQ |
| When to file Form 10E | Online; advisable before filing the ITR. Mandatory to claim the relief | Income Tax Dept — Form 10E FAQ |
| Not filed | ITR processed but section 89 relief disallowed, communicated in the 143(1) intimation | Income Tax Dept — Form 10E FAQ |
Suresh is a clerk in a Zilla Parishad office in Latur. This year he got ₹1.8 lakh of pay-revision arrears for the last three years, all at once. Added to this year's salary, it pushed part of his income into a higher slab, and his TDS went up sharply. But that money was earned over three years, when his income was lower. Section 89 relief makes the tax roughly what it would have been if each year's arrears had been paid on time.
How the relief works (in plain words)
- Work out the tax on this year's income with the arrears, and without them. The difference is the extra tax this year caused by the arrears.
- For each earlier year the arrears belong to, work out the tax with that year's share added, and without it. Add up these differences.
- Relief = (1) − (2), if (1) is bigger. If the extra tax this year is not bigger, there is no relief.
You don't have to do this by hand. Form 10E has the tables, and the portal works it out from your figures.
Watch the old years' regime. For earlier years from AY 2024-25 onward, the portal's "system calculated tax" uses the new regime (the default). For years up to AY 2023-24, it uses the old regime. If those years were taxed differently, the relief can be smaller than expected. Check the figures before you submit.
Which form for which year
| Arrears received in | File | Law |
|---|---|---|
| FY 2025-26 (return for AY 2026-27) | Form 10E | Section 89, Income-tax Act 1961 |
| Tax Year 2026-27 onwards (April 2026 on) | Form No. 39 | Section 157, Income-tax Act 2025 |
Form 39 is the improved version. It has Part A (your details and the tax year) and Part B (arrears, gratuity, pension and so on), with auto-filled data and ready computation tables for each type of receipt.
How to file Form 10E online (AY 2026-27)
- Collect the year-wise break-up of the arrears from your employer or pension office (which year each part belongs to).
- Log in to incometax.gov.in → e-File → Income Tax Forms → File Income Tax Forms → Form 10E. No download is needed; it is filed online.
- Choose the assessment year and fill in the annexure that fits (arrears or advance salary, gratuity, compensation, commuted pension), with the amounts for each earlier year.
- Check the relief worked out, and submit with e-verification.
- Then file your ITR and enter the same relief amount under section 89.
File Form 10E first. If you claim section 89 relief in your return without filing Form 10E, the return is processed but the relief is disallowed, and you'll see it as a demand in the 143(1) intimation.
Who gets arrears like this?
- Government employees and pensioners: DA arrears after a hike is announced late, and pay-commission arrears. See DA calculator and 8th Pay Commission update.
- Private employees: back-dated increments or bonuses paid late.
- Family pensioners: pension arrears paid in a lump sum.
Frequently asked questions
What is relief under section 89?
It removes the extra tax you pay because salary, pension or similar arrears received in one year push you into a higher slab. The tax ends up close to what it would have been if the money had been paid in the right years.
Is Form 10E mandatory?
Yes, if you want to claim the relief. Without it the relief is disallowed when your return is processed.
Should I file Form 10E before or after the ITR?
Before. The Income Tax Department advises filing Form 10E first, then claiming the same relief in your ITR.
What is Form 39?
It is the new form that replaces Form 10E for relief under section 157 of the Income-tax Act 2025, from Tax Year 2026-27. For AY 2026-27, you still use Form 10E.
Can I claim relief on DA arrears?
Yes. DA is part of salary, so arrears of DA received in a later year can get section 89 (now section 157) relief.
Official links
Use only these government websites. HumainOne is not connected to any of them.
- Form 10E FAQWhen and how to file
- Income Tax Forms FAQ (Income-tax Act, 2025)Form 39 replaces Form 10E
- Income Tax e-Filinge-File → Income Tax Forms
- Income Tax helplinee-filing queries
Disclaimer: HumainOne is an independent information website. We are not affiliated with UIDAI, the Income Tax Department, EPFO, NPCI, the Election Commission, the Government of Maharashtra or any government body. We do not accept applications, documents or fees. Information is checked against official sources on the date shown but rules change — always confirm on the official website before acting. Calculators give estimates, not official figures, and this is not tax or legal advice.