Taxation of arrears of salary

This query is : Resolved

chintamani (Querist)
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16 February 2012 Dear Sir/Madam,

i want to know about taxation of arrears of salary & is their any deduction or exemption available.

For e.g.

Employee working in CG
Recd arrears for 09-10 & 10-11 in Dec 11

My quary in above case is whether a person has to file revised return or has to be considered in current year?
Pls provide detailed caculation or procedure if possible

CA. Vikash Dwivedi

CA. Vikash Dwivedi (Expert)
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16 February 2012 if you have recd arrear after filing of your return then you can file revised return.

for arrear/ advance receipt of salary you can claim Relief u/s 89 (1).

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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16 February 2012 Arrears of salary is taxable in the year in which it is received. There is no need to revise the earlier return.

Relief u/s 89(1) is available & the employer has to consider this while deducting tax on salary for FY 2011-12.