Pension Arrears - Taxation

This discussion concerns the taxation of pension arrears received in May 2023, relating to the period March 2017 to March 2023. The pensioner is seeking to claim relief under Section 89(1) of the Income Tax Act and is inquiring whether the arrears can be taxed on a 'due basis' in the financial year 2022-23 to potentially reduce their tax liability. The consensus suggests that salary arrears are generally taxable in the year of receipt, but the specific wording of the law regarding 'not taxed on due basis already' is being explored for potential discretion.