Income Tax Return Filing: Are arrears of salary taxable? How to claim tax relief

Yes, arrears of your salary is taxable under the Income-tax Act, 1961.

Yes. If the assessee has received a portion of his salary ‘in arrears or in advance’, or received a family pension in arrears, the Income Tax Act allows you to claim tax relief under section 89(1).

Section 89 reliefs can be claimed on any of the following received during a particular year:
a) Salary received in arrears or in advance
b) Premature withdrawal from Provident Fund
c) Gratuity
d) Commuted value of pension
e) Arrears of family pension
f) Compensation on termination of employment

An employee entitled to claim relief under Section 89 must submit Form 10E. It has to be filed online at the e-filing portal of the income tax department. As per Section 89(1), tax relief is provided by recalculating tax for the year in which arrears are received and the year to which the arrears pertain; and the taxes are adjusted in the year in which they were due. It must be noted that Form 10E has to be filed before filing the income tax return.

No, you do not need to attach a copy of Form 10E along with your tax return statement. Form 10E is available online and can be filled out on the income tax filing website itself. So once you have filled the form you do not need to attach it with your Income-tax return