Personal Finance

How important the salary certificate is for filing I-T return

Sanjiv Chaudhary | Updated on January 16, 2021

I superannuated in May 2018 from BEML, a Bengaluru-based PSU on attaining the age of 60. I retired on pre-revised wages, though the wage was due for revision from January 2017. The wage revision was settled in during March 2019 and the arrears were paid for eligible retirees in November 2019. The payment does not figure in my Form 26AS. I need to file my returns for the AY 2020-21, but in the absence of Form 10E for claiming rebate on arrears, I am unable to proceed with filing returns. I have been following up with the company for the relevant form but have not made much progress. Can you please advise me on how to go about filing my returns? Is it possible to claim rebate in the absence of the statement and relevant form?

Suresh GS

I understand that you have received payment of arrear salary from your erstwhile employer during FY 2019-20. In such cases, if you are taxed at a higher rate, other that the rate at which you would have been otherwise taxed (in case such incomes was paid in earlier years), a tax rebate as per provisions of section 89 of the I-T Act, 1961 is available. For claiming such rebate, form 10E is required to be filed online in your income-tax account after which the return of income would be filed.

Hence, you should ask for the annual salary certificate, i.e,. Form 16 (Part A & Part B) and Form 12BA (if tax has been deducted)/salary certificate (if no tax has been deducted) from your erstwhile employer, along with a computation of salary income having details of arrear salary for the previous respective years. This would help you in filing of Form 10E and your tax return. In the absence of these details, you may find it difficult to complete Form10E and subsequent tax return.

The writer is a practising chartered accountant.

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Published on January 16, 2021
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