Received arrear salary whose taxes were already paid

[Harmik]

I had some pending salary in previous financial years, but I paid the income tax on due basis for all those in the same financial years. Now my employer is giving me those pending amounts back as chunks. But the problem is I have no idea, how to show in ITR that the extra amount I am getting is arrear whose tax I have already paid on due basis in the respective financial years.

Just for info, In previous years there was no CA in our company, so I filed returns after discussions & researching online. So, during research I found that I must pay income tax on due basis which I did. Now, our company also has a CA, and now company wants to clear my arrears but seems like our CA is clueless about how to handle this scenario, where taxes are paid on due bases.

I am also aware of u/s 89 & form 10E, but all examples I have seen are for arrears whose taxes were not paid, but in my case I have already paid the taxes.

Please advise, Thanks

P.S. I also tried searching this forum but didn't find any post related to this query. If its already there then please guide me to that link.

[Eswar Reddy S]

If tax was already paid in due basis then don’t consider the arrears of salary in the current FY. Hence form 10E filing is not required

[CA Raj Doshi]

If it’s already considered earlier on due basis, then don’t consider it again

[Eswar Reddy S]

@ Harmik,

Just ignore the salary arrears for tax calculation purposes.

Generally pending salary can’t be called as salary arrears. It’s just salary payable.( Just for your info).

The word salary arrears can be seen in government organisations wide PRC

[Harmik]

Thanks for the prompt reply but my office CA says he can't pay the the pending amount without deducting TDS, i.e. I will be taxed twice for same amount, so to get refund from tax authority I need to show it some how on ITR that its already paid. Our office CA might be hesitant coz he has started managing our office salaries for last 2 years only and the pending amount belongs to the older period when there was no CA in our office and we used file ITR voluntary, without any form 16. So, this is the other dimension of the problem.

[Eswar Reddy S]

It is not required to deduct tds on the salary on which tax was already paid

[Harmik]

THANKS, Got your point sir, but wondering how to convince my office CA.

[Eswar Reddy S]

Arrears doesn’t mean the salary which was considered in due basis..

But arrears means retrospective increase in basic or DA or both on account of PRC

[sabyasachi mukherjee]

Arrears salary tax if tax paid earlier no need to pay tax now.

[Eswar Reddy S]

Income is already shown on due basis and tax is already paid in due basis .

Only excess portion compared to due basis can be brought to tax

[Harmik]

Thanks for the input but my office CA says he has to deduct the TDS on that amount too, so looks like I will file form 10E too, so that tax authorities can understand and refund me the excess amount. This is the last option I can think of. Thanks.

[Eswar Reddy S]

Relief of arrears is different from excess amount

[Author]

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