Received arrear salary whose taxes were already paid

517 views 11 replies

Harmik

software dev

27 Points Joined February 2023

I had some pending salary in previous financial years, but I paid the income tax on due basis for all those in the same financial years. Now my employer is giving me those pending amounts back as chunks. But the problem is I have no idea, how to show in ITR that the extra amount I am getting is arrear whose tax I have already paid on due basis in the respective financial years.

Just for info, In previous years there was no CA in our company, so I filed returns after discussions & researching online. So, during research I found that I must pay income tax on due basis which I did. Now, our company also has a CA, and now company wants to clear my arrears but seems like our CA is clueless about how to handle this scenario, where taxes are paid on due bases.

I am also aware of u/s 89 & form 10E, but all examples I have seen are for arrears whose taxes were not paid, but in my case I have already paid the taxes.

Please advise, Thanks

P.S. I also tried searching this forum but didn't find any post related to this query. If its already there then please guide me to that link.

Replies (11)

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

If tax was already paid in due basis then don't consider the arrears of salary in the current FY. Hence form 10E filing is not required

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

If it's already considered earlier on due basis, then don't consider it again

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

@ Harmik,

Just ignore the salary arrears for tax calculation purposes.

Generally pending salary can't be called as salary arrears. It's just salary payable.( Just for your info).

The word salary arrears can be seen in government organisations wide PRC

Harmik

software dev

27 Points Joined February 2023

Thanks for the prompt reply but my office CA says he can't pay the the pending amount without deducting TDS, i.e. I will be taxed twice for same amount, so to get refund from tax authority I need to show it some how on ITR that its already paid. Our office CA might be hesitant coz he has started managing our office salaries for last 2 years only and the pending amount belongs to the older period when there was no CA in our office and we used file ITR voluntary, without any form 16. So, this is the other dimension of the problem.

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

It is not required to deduct tds on the salary on which tax was already paid

Harmik

software dev

27 Points Joined February 2023

THANKS, Got your point sir, but wondering how to convince my office CA.

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

Arrears doesn't mean the salary which was considered in due basis..

But arrears means retrospective increase in basic or DA or both on account of PRC

sabyasachi mukherjee

27992 Points Joined May 2017

Arrears salary tax if tax paid earlier no need to pay tax now.

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

Income is already shown on due basis and tax is already paid in due basis .

Only excess portion compared to due basis can be brought to tax

Harmik

software dev

27 Points Joined February 2023

Thanks for the input but my office CA says he has to deduct the TDS on that amount too, so looks like I will file form 10E too, so that tax authorities can understand and refund me the excess amount. This is the last option I can think of. Thanks.