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Treatment of Arrear Salary

Tax queries 337 views 2 replies

Mr.X Received Salary for F.Y2021-22 of Rs.986847 and Arrears for F.Y 2019-20 Rs.112548 and F.Y 2020-21 138478.

My Questions is

1) is Arrears Salary taxable in the hand of the assessee in the receipt of the year

2)is there any exemption available?

Replies (2)

1.   Yes, he can claim relief under sec. 89(1) of IT act

2.   get-help-with-salary-arrears

3.  guide/taxability-arrear-salary-relief-us-89

Arrears of salary either basic or DA will be taxable in the year of receipt.

You may get 1/3 of tax on arrears as relief ( Approximately)

How much was the taxable income for 2019-20 FY and 2020-21 FY ?


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