The Income Tax (I-T) department in April notified taxpayers that the old Form 10E, used to claim relief in case of salary arrears or other specified receipts, has been replaced with the new Form 39.
According to the Central Board of Direct Taxes (CBDT), Form 39 is used by a taxpayer to claim relief under Section 157(1) of the I-I Act (ITA) 2025. This is to be used in cases where you receive additional salary (arrears or advance), family pension, gratuity, Retrenchment compensation, commutation of pension, etc.
What does Form 39 do?
The form enables the taxpayer to compute and claim relief to neutralise the higher tax burden that may arise on inclusion of the above-mentioned receipts in the total income of the current year.
In order to claim such relief on TDS by the employer, a Government Servant, or an employee in a company, co-operative society, local authority, university, institution, association or body, may furnish the particulars specified in Form No. 39 to the person responsible for making payments after deducting tax, as referred to in section 392 of the ITA 2025.
Who should file Form 39?
The CBDT noted that Form 39 is for use by any individual taxpayer, being an employee, who has received:
Additional salary or additional family pension (arrears or advance)Gratuity for past servicesRetrenchment compensationCommutation of pension,
and wishes to claim relief under section 157(1) of ITA 2025, is required to file Form 39.
Notably, it is mandatory to file Form 39, if the individual is claiming tax relief under section 157(1) of the Act.
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