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How to treat arrears of salary recd

Tax queries 2789 views 4 replies

Income details of Mr A for A.Y. 2015-16 :

gross taxable salary (excl arrears) Rs 707278/-

House property : Rs 53890/- (loss)

Ded u/s 80C Rs.228819/-; u/s 80D Rs.10509/-

as per these details : net taxable income : Rs. 492879/- Tax on it Rs 22288/- & Ed cess Rs 669/-

And he recd arrears of salary Rs 129649/- for PY 2005-06 to 2012-13

tax paid as per form 10E : Rs 13133/-

 

my question is:

1) How do i treat it while filing return

2) In form 16 arrears are not included in salary

3)Tax paid bifercation in form 16 (22288+669+13133)

     Total TDS deducted : Rs 36090

 

If i fill ITR 1 as per form 16 then I get refund of Rs 13133; & if I add arrears in salary and do calculations as wel so I get the huge diff amt payable

 

PLEASE HELP

Replies (4)
Add arrears in the salary..and the amount of relief available u/s 89(1) as per form 10 E in the relief column in ITR.

You have to take benifit of section 89 regarsd tax rate difference in the year it accrued to when it was actually paid and if at that time it was taxed.

@ Dhanashri: (1) Treat the arrears as your salary income only (2) In form 16, arrears will always form part of salary (3) You can claim relief only when tax payable as per current AY is more than tax which would have arisen if the arrears were paid during the relevant A.Y

1) Total Arrears received  should be taken in Salaries.

2) relief u/s 89 should be taken  in

       ITR1 --> S.No 14 in income details sheet

       ITR 2-->  Sheet "Part B Ti-TTi " --> s.no 7a

       ITR4--> Sheet "Part B Ti-TTi " --> s.no 6a

In case you need to calculate relief u/s 89 and guidance for filing 10E then use abacus calculator

https://abcaus.in/incometaxforms/excelautoform10e.H T M L  - down load the XL sheet.

Form 10E has to be filed online only.

i hope this helps 

 


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