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Asked by namish on :Jul. 11, 2018

How is arrear of salary taxable?

How is arrear of salary taxable?

How is arrear of salary taxable?

0

Jeeba Jul. 11, 2018

Salary is chargeable under tax on due or payment basis. Arrears of salary can not be taxed on due basis. If you have received arrears of salary, then it shall be treated as income from salary in a year when it received.

However, you can avail the benefit of relief under section 89 while calculating the tax payable on arrears of such salary.

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