Hello Sir, I am a Central Government Employee and have been filing ITR since 1999. From 1999 to 2013, I filed it manually (ie. on paper). For the last two financial year, I am submitting it online. Recently I got an arrear salary payment from my office for a period of last 8 (eight) years – ie. from 2007 to 2015. This has happened since I got a promotion in 2007 and as per the provisions laid down by 6th CPC Report, my pay scale had to be revised. This revision has now taken place. For this I got a lumpsum arrear payment towards revised salary for the last eight years. Now the problem is that although I fall under 10% Tax Bracket, but due to this lumpsum arrear payment, my income for this current financial year is falling under 20% Bracket. As a result, my office is calculating the tax for this current year under 20% bracket and is deducting the same. Sir, had this salary been revised in 2007, this arrear payment would have been received by me as a part of my salary during the last eight years. Therefore, I could have got the opportunity to find my Income under 10% Bracket. Now, I would like to know, whether it is possible that I can submit revised IT Returns for these last 8 (eight) financial year because I think that would facilitate me to show my income still falling under 10% Bracket and I can have the rest 10% (20% - 10%) Tax refund from the IT Department, which my office is now deducting. If yes, kindly tell me about the procedure. Once again I would like to say, all my returns were submitted manually (on paper) except for the last two years and I have all the copies with me for records. Thanking you in advance – Rajib.
Arrear Salary Payment for last 8 (eight) years causing me to fall under 20% Tax Bracket in lieu of earlier 10% Tax Bracket
Rajib R
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Section - 89, Income-tax Act, 1961-2014
B.—Relief for income-tax]
54[Relief when salary, etc., is paid in arrears or in advance.
- Where an assessee is in receipt of a sum in the nature of salary55, being paid in arrears or in advance or is in receipt, in any one financial year, of salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, or is in receipt of a sum in the nature of family pension as defined in the Explanation to clause (iia) of section 57, being paid in arrears, due to which his total income is assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer shall, on an application made to him in this behalf, grant such relief as may be prescribed56:]
57[Provided that no such relief shall be granted in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (i) of clause (10C) of section 10, a scheme of voluntary separation, if an exemption in respect of any amount received or receivable on such voluntary retirement or termination of his service or voluntary separation has been claimed by the assessee under clause (10C) of section 10 in respect of such, or any other, assessment year.]
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