Is Form 10E applicable for Notice Pay received in Full & Final Settlement?

[Amit]

Hi Everyone,

I need some guidance regarding Section 89 and Form 10E.

I resigned from my job and my last working day was 27-Feb-2026. My notice period was 3 months, but the company relieved me early and paid me for the remaining 3 notice period as part of my Full & Final settlement.

The breakup included:

• 1 month as Resign Salary Release (Feb)
• 2 months as Notice Pay(Mar and April)

The entire amount was taxed, TDS was deducted, and it is included in my Form 16 for FY 2025-26.

Because of this, an amount equivalent to the April (FY 2026-27) notice period was also taxed in FY 2025-26, even though my employment had already ended in February.

Can I claim relief under Section 89 by filing Form 10E for this payment?

AI Summary

Section 89 relief for notice pay in full and final settlement raises Form 10E filing questions Relief under Section 89 and filing of Form 10E are questioned for notice pay received in a full and final settlement after early release from employment. The employer paid the unserved notice-period salary, including amounts relatable to later months, and taxed the whole sum in FY 2025-26. The issue is whether the portion attributable to the later period can be claimed as salary-related relief under Section 89 through Form 10E.