Use Section 89 (1) to reduce tax burden arising from arrears: Experts

To avail of this relief, you must file Form 10E before submitting income-tax return

Many employees faced salary cuts because of the disruption caused by Covid-19. But when the outlook improved, salaries of many such employees were reinstated, and some even received bonuses. Many are now wondering if they will have to pay higher taxes this year. 

Suresh Surana, founder, RSM India, says, “Salary is taxed in the hands of an individual on due or receipt basis, whichever is earlier. However, if an individual receives a certain sum of money in the current year that pertains to a previous year, he may have to pay higher taxes on such receipts as a result of