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Arrear salary

Lalit (Bikaner) (52 Points)

20 February 2016

I received arrears salary, and is amount deducted from arrear can be allowable u/s 80C as additional deduction for the previous years.

what is the meaning of arrear salar:-

Is is net of deduction u/s 80c or gross.

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3 Replies

Shivani Mittal (Practice) (425 Points)
Replied 20 February 2016

Arrear Salaray means salary accured earlier but received now. Nature of deduction from such salary, reason for arrears and financial year to which such arrears pertains will be the deciding factors for allowance of such deduction.

Lalit (Bikaner) (52 Points)
Replied 20 February 2016

A Govt. employee receive arrear salary and department deducted gpf and others from his arrear salary.

Now these deduction are allowable from current year income or the income of the previous year from which they are belongs.

Shivani Mittal (Practice) (425 Points)
Replied 22 February 2016

In my opinion it should form a part of this years taxable salary and accordingly deductions from such salary also form a part of this year's taxable income eligible for deduction u/s 80C. Further relief u/s 89 can be claimed wrt to arrears.

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