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Arrears of Salary for govt employees

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Is arrears of salary taxable for govt employees ?
Replies (10)
Yes it's taxable.
Why ? Is rebate not applicable ?
All salary and allowances are taxable. Rebate is a seperate concept. It's applied on gross total income.

Yes, arrear salary is taxable. 

However, you can claim rebate u/s 89(1)

What if tax was not paid earlier ?

You can claim Relief  u/s 89 (1)

It is taxable as clause (c) of Section 15 of Income tax act provides that arrears of salary is also taxable in the year in which received or allowed. However, employee can get tax releif under Section 89 as due to receipt of arrear of salary his slab rate get increased (for Assessment Year). For this employees needs to provide working of tax of earlier year as per Rule 21AA of Income tax rules and needs to submit Form No. 10E along with his return. It is to be noted that as all return is now in electrnic mode, hence this form will also submiited electronically.

Thank You

Do you mean it's taxable partly ?

Salary Arrears
- Section 89

and balance only taxably

No it does'nt mean that it is partly taxable, it means that employee will get tax relief (reduction in tax) because due receipt of arrears current year's slab goes up. Hence re-calculation will be done.

It's not due receipt of arrears .

In govt organizations basic and DA increase with retrospective effect . So these will come under arrears for past years .

Iam talking about this ..


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