Are arrears of salary taxable?

Article author
Nneka
  • Updated

​​​​​ Yes. However, because your income is spread across the years to which it relates, it is possible for you to incur lower tax. In other words, keeping other things constant, where the income tax paid in the year of receipt is more than it would have been in the year to which the arrears relates, the assessee can claim the benefit of the year to which it relates.

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