For central employees, there is important news. If you work for the government and have received back pay, it is good to know that everyone who receives pay in accordance with the Seventh Pay Commission’s recommendations is eligible for tax exemption. You should be aware of ways to reduce taxes on money owed to the government before filing your income tax return.
central employees will benefit from a tax exemption
Let us inform you that personnel receiving pay under the Seventh Pay Commission are eligible for the section 89 tax exemption on arrears. You may file a tax relief claim. To obtain a tax exemption, you must complete Form 10E on the website for electronic filing.
There are two annual increases to the dearness allowance of central employees.
The central government increases the dearness allowance of the central employees twice a year, as a result of which they receive DA arrears money. In the months of January and July, the government updates the DA arrears data. This time around, it’s anticipated that the government would raise the daily amount by 4%. Therefore, employees of the government may claim a tax exemption on the amount of the arrears. The employee’s account receives the arrears of DA.
What does the professional think?
According to experts, you must first submit Form 10E before claiming a tax credit under Section 89. You risk receiving a warning from the Income Tax Division if you file a claim without this form. It will be noted in the notification. You will learn that you were not granted relief under section 89 since Form 10E was not filed in the notification sent out by the Income Tax Department.
Steps for submitting Form 10E
- You must first visit the official website at http://www.incometax.gov.in.
- Once you’ve done so, select E-File > Income Tax Form > File Income Tax Form.
- Here, you can see the 10E form.
- You must now choose the year from the list. After completing all the fields, click submit, followed by preview.
- Click on e-Verify Proceed now. The e-verification page will then load in front of you after that.
- You’ll receive the message once the e-verification is finished.
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