Rajasthan Teachers & Employees Help
This is an independent educational calculator to help Rajasthan government employees (teachers, officers, clerks) calculate and file Form 10E for claiming income tax relief under Section 89(1) of the Income Tax Act, 1961. If you receive salary arrears from previous years in the current year, your tax burden increases unfairly — Section 89(1) provides relief for this.
When salary arrears (बकाया वेतन) from previous financial years are received in the current year, they are taxed in the current year at the current tax slab rate. This can push you into a higher tax bracket even though the income actually belonged to earlier (lower-income) years. Section 89(1) of the Income Tax Act provides relief by computing tax as if the arrears had been received in the year they actually pertained to — and refunding the excess tax if the current-year rate is higher.
Form 10E consists of Annexure I (8 items) and Table A (year-wise tax difference). The relief = Item 6 − Item 7 (if positive):
| Item | Particulars | How to Calculate |
|---|---|---|
| 1 | Total income excluding arrears | Item 3 minus Item 2 |
| 2 | Total arrears received | Sum of all year-wise arrears |
| 3 | Total income including arrears | Net taxable income this year (after standard deduction & 80C) |
| 4 | Tax on Item 3 | Slab tax + cess on total income including arrears |
| 5 | Tax on Item 1 | Slab tax + cess on income excluding arrears |
| 6 | Tax on arrears in current year | Item 4 − Item 5 |
| 7 | Tax on arrears in respective years (Table A) | Sum of Col-7 of Table A (tax difference year-wise) |
| 8 | Relief under Section 89(1) | Item 6 − Item 7 (if positive; else NIL) |
| Taxable Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | NIL |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
* Health & Education Cess: 4% on tax. Rebate under Section 87A: If income ≤ ₹12,00,000 under new regime, full tax is exempt (zero tax).
Q: Is Form 10E mandatory even if the relief is small?
A: Yes. As per CBDT, Form 10E must be filed online on the IT portal before filing ITR if you are claiming Section 89(1) relief — otherwise your ITR will be processed without the relief.
Q: Can I file Form 10E under the New Tax Regime?
A: Yes, Section 89(1) relief is available under both old and new tax regimes. You must use the same regime for both the current year and the past years' calculations.
Q: What if Section 89(1) shows NIL relief?
A: This can happen if the tax in past years (Table A) is higher than the current year's tax on arrears. In that case, no relief is available and no Form 10E needs to be filed.