Salary becomes taxable earlier on receipt or on a due basis. So any salary received in advance becomes taxable in the year of receipt even if the same has not become due. Likewise, the salary due but not paid becomes taxable in the year in which it becomes due to the employee.
So the salary for the years 2022-2023 and onwards becomes taxable in your hands in the year to which the same is related, though not fully received during that year. Ideally you should have offered the same for tax in the respective years.
Income from employer must be reported as salary
Any income received from an employer becomes taxable under the head salaries so that even if the employer does not provide you the details, the same have to be offered for tax as salary. In case you have not offered the full salary in the year to which it relates, it is better that you include the same in your income for the financial year 2024-2025.
Since the employer is not willing to provide you the break-up of the year to which the lump sum salary belongs, you cannot submit form no. 10E and therefore cannot claim a rebate under Section 89(1) in respect of arrears of salary received during the financial year 2024-2025.
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Balwant Jain is a tax and investment expert and can be reached at jainbalwant@gmail.com and @jainbalwant on his X handle.
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
