Dear ALL,
I feel the amount relating to the earlier years even if not considered as arrears, it becomes taxable. Sec.23(1)(b) talks about "received or receivable". That amount has become receivable during the year only and has actually been received also and hence shall be taxed in the normal course without considering Sec.25B. Pl note that "23(1)(a)" talks about "from year to year" and in "b" no reference to year is there meaning that whatever is received has to be considered under that Sub-section. To conclude, if it is considered as arrears, Sec25B shall be attracted and if not Sec.23(b) will be attracted. In both the cases deduction can be availed.
CAclubindia
