07 February 2011
A govt. employee while retiring after 20 years of service in air force in feb, 2010. Receives salary arrears relating to years from 2003-2010 at the end of his service. The payment was made by deducting tax. whether it is taxable this year? that is A.Y. 2010-2011. if taxable under what head and section. Please help me out with this. I'm confused.