Claiming tax relief on salary arrears? Don’t forget to file Form 10E
Some important things must be kept in mind when you are claiming relief on arrears
Receiving salary or pension in arrears might change your tax situation. You may fear it’s going to move you up a tax slab. Or tax rates may be higher in the year arrears are received as compared to the year to which they belong. To protect you from any additional tax burden, due to delay in receiving income, the tax laws allow a relief under Section 89(1). This relief can be directly claimed in your income tax return, if you have received any portion of your salary in arrears.
CLICK FOR DETAILS: 29.08.2018 FORM 10-E INCOME TAX
