Arrears salary of past months given in Quarter 4

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An employee is due to receive Rs. 3 lacs in arrears salary from previous months, with the employer planning to pay this in Quarter 4 of FY 2021-22. This means the employee would receive Rs. 1 lac per month from January to March, in addition to their regular salary. The query seeks clarification on whether this payment arrangement is permissible under income tax laws and what alternatives are available to the employee.

DIVYESH JAIN

DIVYESH JAIN (Querist)
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13 January 2022 Dear Sir,

One of my client has to receive arrears salary of past months of Rs. 3 lacs which the employer is willing to give in Quarter 4 of F.Y. 2021-22.

The total salary of the employee is Rs. 3.5 lacs p.a.

Is this transaction allowed as per Income tax as the employer will be giving Rs. 3 lacs in 3 months divided as Rs. 1 lac per month from Jan to Mar in Quarter 4

Please help me in this matter.

Regards,
Divyesh Jain