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Tax applicability on salary arrears of previous years.

This query is : Resolved 

07 February 2011 A govt. employee while retiring after 20 years of service in air force in feb, 2010. Receives salary arrears relating to years from 2003-2010 at the end of his service. The payment was made by deducting tax. whether it is taxable this year? that is A.Y. 2010-2011. if taxable under what head and section. Please help me out with this. I'm confused.

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Guest (Expert)
07 February 2011 You can claim rebate u/s 89 for the arrears of earlier years otherwise it will be taxable in 2010-11.

07 February 2011 Sir,
But can Excemption u/s 10(10C) be claimed for him since he was a govt. employee(Indian Air Force) he has completed 20 years of service.




07 February 2011 actually that was my doubt.

07 February 2011 It is given that he is later on employed in RMS(Railway Mail Service). Is it considered to be under same management?

07 February 2011 The employee has retired due to age and not voluntarily retired to claim exemption u/s 10(10)(C) as the section is for VRS.

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08 February 2011 exemption u/s 10(10)(C) will not be available.



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