7th Pay Commission: Central Government Employee Salary News: Many times employees get a lump sum amount for some benefits received in the previous years. For example, you can get a large amount in the form of salary arrears, gratuity, leave encashment. In such a situation, there may be a liability of tax on these money.
In such a situation, you can take the help of section 89 of Income Tax. This will help you save tax on arrears. Arrears means that you will get the outstanding money of the previous month by adding it to the salary. Now the question is whether any form has to be filed to save tax on arrears under section 89? Let us know what the income tax rules related to this say.
Form 10E is required to be filed
As per the tax rules, it is mandatory for a government employee to file Form 10E online on the income tax e-filing website to claim relief under section 89. If a taxpayer claims relief under section 89 without filing Form 10E, the income tax department can reject this claim. Therefore, you need to file Form 10E online before filing your income tax return.
How to file Form 10E
- Government employees can file their Form 10E in this way.
- First you have to log on to the website http://www.incometax.gov.in.
- After logging in, click on the tab e-File > Income Tax Form > File Income Tax Form. After this click on Tax Exemption and Reliefs/Form 10E.
- Central Government employees receive their payments (salary, pension, allowances etc.) as per the recommendations of the 7th Pay Commission. Filing of Income Tax Return (ITR) is mandatory for all employees. The last date for filing returns for the assessment year 2022-23 for salaried employees was 31 July 2022.
Salary revision of central government employees
In a recent statement in Parliament, the government said that the revision of payments made to central government employees can be done at any time as per the recommendations of the Seventh Pay Commission. It is not necessary to constitute another pay commission for this. However, the government also said that it is not correct to claim that there will be no 8th Central Pay Commission in future. Meanwhile, central government employees are awaiting another revision in the rate of dearness allowance in the second half of the financial year. An announcement in this regard can be made soon.
