Tax Executive
530 Points
Joined July 2012
Any sum(s) received in arrear will be taxed in the year of receipt if the same has not taxed earlier. For claiming tax rebate u/s 89(1), tax is first computed on total income including such arrears and then tax is computed on total income excluding such arrears. The difference, if any in positive may be claimed u/s 89(1).
Pls read the section 89(1) throughly for this purpose.