Tax from arrears?

Dear Sir/Madam,

I am a Government employee. I have got some arrears (career enhancement and AICT upliftment) . I have deposited the same in my salary account. Now it has earned an interest in the salary/savings account.

1) Do I need to include this as income from other sources as bank interest in Income Tax?

2) Is there any option by which I can channel this money and save the tax?

Thanks a lot in advance for your replies.

Thanks,

Sayan