ARREAR SALARY

   

It is taxable on receipt basis if the same has not been subjected to tax earlier on due basis. In this case also recipient can claim relief under section 89.

Provision illustrated - The following illustrations are given to have a better understanding:

On March 10, 2010, X receives a sum of Rs. 80,000 as arrears of bonus pertaining to the previous year 2007-08, it was not taxed during the previous year 2007-08.