hie,
My friend ws not getting his salary for the past 3 yrs due to some reason and now when he s receiving his 3yrs salary he s worried about the tax implications. According to my knowledge this arrears of salary can be split for availing tax benefit. Can anybody tell me the section which covers the same and plz explain if i am correct.
Plz reply soon.
Thank you
salary is taxable on due or receipt bassi whichever is earlier. So thought the salary was not being received during the past 3 years it should had been offered for taxation as salary due was earlier than receipt of salary. So the tax shall be computed for the three eyars seperately.
But the return can be filed within a period of 1 year from the end of A.Y. So the return of A.Y. 11-12 can be filed upto Mar13.
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