About income tax return 10E FORM FILLING

The salary received in arrears must be declared in the year of receipt (FY 2026-27). To prevent a higher tax liability, Form 10E must be filed online prior to submitting the ITR for FY 2026-27. This calculates tax relief under Section 89(1) by comparing the tax liability of the year of receipt against the year the income was actually earned (FY 2025-26).

So it means for fy 2025-26 the Gross income will be what I have received and return will filed on basis of that. 

And In retrun of FY 2026-27 arrear will be adjusted with previous year through form 10E. and Gross income will have arrear added in it for fy 2026-27 which will be adjusted through 10E . 

Thanks and regards 

@ Mahender Singh

Better to wait for AIS / TIS for FY2025-26 to see how the belated payment is shown.

Many salaried people would have very similar issue like you, and it is quite likely, that the Employer would show the Salary payment for the last month [March] of the FY in the last month itself to I T Authorities, even if the Employee actually received in the following FY First month [April].

Once you know what is shown in AIS/TIS, you may act accordingly as advised by @ Aashok FC Advisory

Dear All Expert Members of this Forum.

Please Consider the following case and give your advice :-

Mr Z is a salaried individual.

He paid all Advance Taxes on time for FY2025-26 based on the TDS calculations by his Employer.

The Employer did not deduct TDS from salaries of MR Z for the 3 Months Jan 2026, Feb 2026 and Mar 2026.

The Employer has now deducted the TDS for Jan-Mar 2026 + for Apr 2026 from the Apr 2026 Salary paid in 1^st Week of May 2026.

Question – What is now to be done Mr Z before Tax Filing for AY2026-27 [FY2025-26] to avoid paying any penalty due to the Belated Deduction of the Jan-Mar 2026 TDS by the Employer ?

The earlier answer is correct: declare arrears in the year of receipt, which is FY 2026-27.

Two important steps:

First, file Form 10E on the income tax portal BEFORE submitting your ITR for AY 2027-28. If you file ITR first and then Form 10E, you get a notice. The form itself calculates the relief under Section 89(1) automatically by comparing tax with and without the arrears.

Second, once Form 10E is filed, claim the relief amount in your ITR under Schedule TR or the relief section. The portal pre-fills the Form 10E amount into the ITR once filed.

Note: If the arrears relate to multiple past years, Form 10E breaks it out year by year and computes relief for each. Keep your salary slips and employer certificate handy.

This [ITR form selector guide for AY 2026-27](https://taxgarden.in/blog/itr-form-selector-ay-2026-27-choose-itr-1-2-3-4-by-income-india) also covers which ITR form to use for salaried taxpayers with arrears.