The Income Tax department has officially replaced the old Form 10E with the new Form 39 for taxpayers to claim relief on salary arrears and specified receipts under Section 157(1) of ITA 2025. According to reports from Mint, this change was notified by the Central Board of Direct Taxes (CBDT) in April, affecting taxpayers who receive additional salary, family pension, gratuity, retrenchment compensation, or commutation of pension. The form enables taxpayers to compute and claim relief to neutralise the higher tax burden that may arise on inclusion of these receipts in total income of the current year.
As reported by Mint, Form 39 is mandatory for any individual taxpayer who is an employee and has received additional salary or additional family pension (arrears or advance), gratuity for past services, retrenchment compensation, or commutation of pension. The form must be filed on the Income Tax e-filing portal and can be submitted electronically under digital signature or through electronic verification code. According to the CBDT, there is no time limit for filing Form 39 under ITA or I-T rules, though it is advisable to file at least three months prior to claiming relief in the return of income. For TDS relief by employers, the form must be furnished well before the end of the relevant tax year.
According to Mint reports, taxpayers filing Form 39 must provide comprehensive documentation including a break-up of receipts for which relief is being claimed, TDS Certificate in Form 130, Annual Information Statement in Form 168, computation of income and tax liability for the relevant tax year, and proof of lump-sum receipts such as employer's letters, pension orders, and retrenchment orders. The form also requires TDS Certificate in Form 130 or Form 16, Annual Information Statement in Form 168 or Form 26AS, ITRs and computation of income and tax liability for earlier tax years to which the amount relates. Once Form 39 is submitted after verification and acknowledgment is generated, it cannot be edited, and the form cannot be submitted without a valid PAN of the individual.
As reported by Mint, Form 39 has separate sections to claim relief in case of receipt of additional salary, gratuity, retrenchment compensation, and other specified receipts. The form can only be submitted online through the Income Tax e-filing portal and has specific limitations including the inability to edit submitted forms after verification and acknowledgment generation. The form is designed to provide comprehensive relief computation for various types of salary-related receipts that may increase tax liability for the current year.
