Dearness Allowance has been increased this year for central employees as well as government employees of many states and they are getting arrears…
How to claim Tax Relief on DA Arrears: Half of the year 2023 has passed and till now crores of government employees of the country have got the benefit of increased salary. The governments of many states including the central government have announced to increase the dearness allowance in 2023. In such a situation, crores of employees of state governments including the central government are getting the benefit of increased salary.
Understand maths with this example
The employees who are getting the benefit of increased salary due to increase in dearness allowance, have also got the benefit of arrears. For example, like the central government announced the increase in DA in March 2023, but the increased dearness allowance became applicable from January 2023 itself. In such a situation, arrears were paid to the employees in lieu of the earlier months. The same situation is with the employees of all the states where DA has been increased.
This work increased with arrears
Now all the affected employees have benefited due to the arrival of arrears, but along with it some work has also increased. The work is also such that if it is not dealt with in time, then you may have to bear the loss. There is not much time left to complete this work. The month of July has already started and all the beneficiary employees have only time till the end of this month for this important work.
Remember this date well
Actually we are talking about income tax return. The deadline for filing income tax return is July 31 and there is little scope to extend it. The employees who have got the payment of arrears will have to claim tax relief for the benefit of tax. Under Section 89 of the Income Tax Act, government employees get the facility to claim tax relief on payment of arrears.
This work has to be done before ITR
However, this facility is not available automatically. For this, the employees have to fill a form. If you also fall in this category and want to get tax benefits, then you will have to fill Form 10E under section 89 of the Income Tax Act. You can file Form 10E online from the comfort of your home. For this, you have to go to the e-filing website of the Income Tax Department. It is important to note here that Form 10E has to be filled before filing ITR to avail tax benefits.
How to file Form 10E (How to file Form 10E Online):
- First of all visit the e-filing website of Income Tax Department http://www.incometax.gov.in.
- Select the Tax Exemptions and Reliefs Form 10E option. You can also search it from the search box.
- Now select the assessment year and click on continue.
- Now a new page will open. There click on Let’s Get Started.
- Select the required section and click on continue.
- Now you will get Arrears Salary/Family Pension, Advance Salary, Gratuity, Compensation, Pension Commutation options.
- Select the first option i.e. Arrears Salary/Family Pension.
- Now provide the requested information.
- After this you will have to do e-verification.
- Your claim will be submitted as soon as the e-verification is done.
