Taxation of arrears of salary

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This query is : Resolved

chintamani (Querist)

16 February 2012 Dear Sir/Madam,

i want to know about taxation of arrears of salary & is their any deduction or exemption available.

For e.g.

Employee working in CG
Recd arrears for 09-10 & 10-11 in Dec 11

My quary in above case is whether a person has to file revised return or has to be considered in current year?
Pls provide detailed caculation or procedure if possible

CA. Vikash Dwivedi

CA. Vikash Dwivedi (Expert)

16 February 2012 if you have recd arrear after filing of your return then you can file revised return.

for arrear/ advance receipt of salary you can claim Relief u/s 89 (1).

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)

16 February 2012 Arrears of salary is taxable in the year in which it is received. There is no need to revise the earlier return.

Relief u/s 89(1) is available & the employer has to consider this while deducting tax on salary for FY 2011-12.

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