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Income tax treatmet of arrear salary

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Querist : Anonymous

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Querist : Anonymous (Querist)
08 January 2012 Dear Sir/Madam
My income was less than Income tax limit in the year 2009-10 and 2010-11. It was per-revised salary. Now, in the year 2011-12 the salary scale revised (w.e.f. 1st April 2009) and in the year 2011-12 my income fall under taxable limit(if i include the arrears salary of 2009-10 and 2010-11. The employer is asking to deduct TDS including on arrears amounts too.
I have recalculate my income tax on arrears, if i distribute my arrears in the year 2009-10 and 2010-11. it seems, if add my arrears in the particular years (instead of 2011-12) my TDS will be negligible. (becasuse major part of arrears income belongs to 2009-10 and 2010-11)
Please advice. (

09 January 2012 Since you have received arrear salary, the entire income will be taxable in the year of receipt.

However, you can claim rebate under Section 89.

This relief will reduce your tax liability massively.

09 January 2012 Ask your employer to recalculate the TDS deductible including the arrear salary received...and to give the effect of relief u/s 89...


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