Answer

1. F

   Facts

   Relief for salary arrears under Sec 89 is allowed only if Form 10E is filed online before the return. If Form 10E is missing, CPC disallows the relief.

2. P

   Provisions and law

   • Sec 89, Income-tax Act 1961 (now Sec 157)Relief when salary arrears or advance push income into a higher slab, claimed with Form 10E.
   • Sec 143(1)(a), Income-tax Act 1961 (now Sec 270(2))Adjustments allowed in processing include arithmetical errors, incorrect claims apparent from the return, and income shown in Form 26AS, Form 16A or Form 16 but missing from the return.
3. A

   Analysis

   Say you received ₹2,40,000 of arrears for two earlier years and claimed ₹18,000 relief. Without Form 10E on the portal, the intimation removes the ₹18,000 and raises a demand. File Form 10E now for that assessment year and then file a rectification asking CPC to reprocess. Keep the arrears break-up from your employer.

4. C

   Conclusion

   1. 1Check under e-File, View Filed Forms whether Form 10E was filed.
   2. 2If not, file Form 10E for that assessment year.
   3. 3File a rectification asking for reprocessing.
   4. 4Respond to the demand as disagree, citing the rectification.
   5. 5Keep the employer's arrears letter.

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