Kuldeep (Trainee ) (100 Points)
25 May 2010hello dear friends
we provide arrears of salary to our employees as per 6th pay commission as we were an govt. aided institute and deducted tax on the same. I would like to have your valuable suggestion , whether such payment is allowable as deduction under Income Tax Act.
Thanks
CA Amit Kumar Khaitan
(Research Analyst)
(360 Points)
Replied 25 May 2010
Yes ofcourse... the employer will b getting the deduction....... its just salary....................... nothing special..
VIPIN KUMAR
(Practicing)
(309 Points)
Replied 25 May 2010
arrears of salary just the part of salary and it is taxable in the year which its received. Because salary taxable on due basis.
harish sharma
(student)
(58 Points)
Replied 26 May 2010
since any amount paid to employees is deductable u\s 37(1) subject to section 40a & 43B
hence arrears of salary is deductable in the year of payment u\s 37(1)
CA Rajib Dutta
(audit manager)
(44 Points)
Replied 26 May 2010
Yes, it is deductable as salary payment is deductable under section 37 of the act.
SUCHINDRA PARE
(Lawyer)
(80 Points)
Replied 26 May 2010
if you had already paid tax on the arrears of salary than amount which you receive now is not taxable..... but if the amount of arrears of salary was never taxed before then it shall be taxable whever it is received.....
salary is taxable on due or receipt basis whicever ie earlier...salary is taxable only once..... there is no double taxation.....so if you had paid the tax earlier then you need not pay tax again......but if the arrears of salary was never taxed then you need to pay tax on it now....
CA LOVELY ARORA
(C.A. B.Com (H) Graduate)
(2151 Points)
Replied 26 May 2010
it will be taxable............ and relief u/s 89 is allowed......
Bala
(Student)
(498 Points)
Replied 26 May 2010
| Originally posted by : VIPIN KUMAR | ||
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arrears of salary just the part of salary and it is taxable in the year which its received. Because salary taxable on due basis. |
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PRATEEK
(ACA)
(102 Points)
Replied 26 June 2010
ARREAR OF SALARY MEANS THAT SALARY WHICH WAS NOT DUE IN THE EARLIER YEAR THE INCOME IS TAXABLE UNDER THE SALARY HEAD ON DUEOR RECIEPT BASIS WHICHEVER IS EARLIER SINCE THIS PORTION IN DUE AND PAID IN THE CURRENT YEAR THEN IT WOULD BE TAXABLE IN THE CURRENT YEAR ITSELF AND TAX WILL HAVE TO BE PAID ON SUCH AN AMOUNT
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