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.