18 June 2019
Dear Sir, Im Filing income tax return for government employee and government has paid salary arrears from 2014 to 2019 also paid interest on arrears in this case for example
salary 2014 to 2018 = 700000 Total arrears 2014 to 2018 = 850000 (Arrears -700000 & Interest 150000) 150000 interest is taxable or not
19 June 2019
As of my view, you may Calculate Tax Relief u/s 89 (1) for Arrears of Salary received. And interest receipt is fully taxable. ( But it is new to know that Interest also paid for arrear salary)
CAclubindia
