Why you need to claim Form 10E when you receive salary arrears If you have received a salary hike or promotion with arrears—salary that should have been paid in the previous years—it can inflate your taxable income in the year you receive it. Unless you can claim tax relief, you may end up paying more tax than necessary. Enter Form 10E. It assists you in reducing your taxation by allowing you to claim relief under Section 89(1) of the Income Tax Act for advance or excess income.