Arrears of salary whether deductible

hello dear friends

we provide arrears of salary to our employees as per 6th pay commission as we were an govt. aided institute and deducted tax on the same. I would like to have your valuable suggestion , whether such payment is allowable as deduction under Income Tax Act.

Thanks

Replies (9)

Yes ofcourse... the employer will b getting the deduction....... its just salary....................... nothing special..

Pls explain the question clearly

arrears of salary just the part of salary and it is taxable in the year which its received. Because salary taxable on due basis.

since any amount paid to employees is deductable u\s 37(1) subject to section 40a & 43B 

hence arrears of salary is deductable in the year of payment u\s 37(1)

Yes, it is deductable as salary payment is deductable under section 37 of the act.

if you had already paid tax on the arrears of salary than amount which you receive now  is not taxable..... but if  the amount of arrears of salary was never taxed before then it shall be taxable whever it is received.....

salary is taxable on due or receipt basis whicever ie earlier...salary is taxable only once..... there is no double taxation.....so if you had paid the tax earlier then you need not pay tax again......but if the arrears of salary was never taxed then you need to pay tax on it now....

it will be taxable............ and relief u/s 89 is allowed......

Originally posted by : VIPIN KUMAR

arrears of salary just the part of salary and it is taxable in the year which its received. Because salary taxable on due basis.

You want to know the taxtreatment in the hands of the employer or employee...!

ARREAR OF SALARY MEANS THAT SALARY WHICH WAS NOT DUE IN THE EARLIER YEAR THE INCOME IS TAXABLE UNDER THE SALARY HEAD ON DUEOR RECIEPT BASIS WHICHEVER IS EARLIER SINCE THIS PORTION IN DUE AND PAID IN THE CURRENT YEAR THEN IT WOULD BE TAXABLE IN THE CURRENT YEAR ITSELF AND TAX WILL HAVE TO BE PAID ON SUCH AN AMOUNT

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