Form 10E must be filed online on the Income Tax Department website www.incometaxindiaefiling.gov.in . A notice from the income tax department is issued for non-compliance if a taxpayer claims relief for last financial year but did not file Form 10E. Hence, Form 10E must be submitted before filing your income tax return.
It is confusing for many taxpayers to decide which assessment year to choose while filing Form 10E. Arrears may pertain to earlier years, however, one has to choose the assessment year in which arrears have been received. For example, if arrears are received in financial year FY 2015-16, choose assessment year as AY 2016-17.
Before adjusting your taxes and allowing tax relief, your employer may ask for confirmation of submission of Form 10E. However, it is not mandatory to submit this form to the employer. By filing this form at the time of submitting your tax returns you can claim tax relief. Unlike salary which is taxable when it is due or when actually received, whichever is earlier, arrears are announced from the back date and hence, can not be taxed when due.