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Regarding salary arrear

prem (home) (47 Points)

27 January 2012

sir

i am a govt employee. our salary is not paid by govt sometime in time as at present we have not got salary for last 4 months .consider we get our salary in the month of april2012, is this income for the financial year 2011-12 or for the yr 2012-2013.

What will be provision of income tax for this amount?

is it neccesary to show it in financial year2012-2013

and if it is to be consider in 2011-2012 what shoulld i have do for that and is the saving under rebateable schemes is neccesary to invest before 31st march 2012

thanks

kamal gupta

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4 Replies

ACMA Obulirajan R (M.Com, ACMA) (1119 Points)
Replied 27 January 2012

As per your query, you need to show your arears income in the FY 2012-13 and this arears salary will be included in your 2012-13 total income for the purpose of IT.

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leeladhar (apprentice) (261 Points)
Replied 27 January 2012

Salary is taxable on 'due' or 'receipt' basis whichever is earlier.So in this scenario the four months salary should be considered for tax computation on due basis.

Sir, you can invest in long term infrastructure bonds (80CCF) and can claim deduction maximum upto Rs.20,000.

ACMA Obulirajan R (M.Com, ACMA) (1119 Points)
Replied 27 January 2012

As per your query, you need to show your arears income in the FY 2012-13 and this arears salary will be included in your 2012-13 total income for the purpose of IT.

Ramanuj (Accountant.) (834 Points)
Replied 27 January 2012

Dear Prem

I Think Salary is payable on Due basis or receipt basis whichever is earlier. so that if you not get salary last four months then you make computation on salary you have to be calculated 12 months salary for F.Y. 2011.2012. because its is elarlier due basis.

Thanks

Regards

Ramanuj