Sir,
Somebody informed me whether arrears of the previous financial year drawn and paid during this financial year will be taxed in this year. Do we have an option to revise the income tax of the previous financial year so that the arrears of the previous year can be included in that year itself? Please enlighten me.
With Regards, S. Sudarsan
From India, Tirupati
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2Somebody informed me whether arrears of the previous financial year drawn and paid during this financial year will be taxed in this year. Do we have an option to revise the income tax of the previous financial year so that the arrears of the previous year can be included in that year itself? Please enlighten me.
With Regards, S. Sudarsan
From India, Tirupati
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Hi Sudarsan,
To my knowledge:
1. If the arrears were received in April along with the March month salary, then this could be treated as previous financial year income, and taxes should be recalculated accordingly before filing the returns for the previous year.
2. If the returns for the previous financial year have already been filed, excluding this amount, then this should be treated as income during the current financial year.
Best Regards,
Prakash
From India, Bangalore
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To my knowledge:
1. If the arrears were received in April along with the March month salary, then this could be treated as previous financial year income, and taxes should be recalculated accordingly before filing the returns for the previous year.
2. If the returns for the previous financial year have already been filed, excluding this amount, then this should be treated as income during the current financial year.
Best Regards,
Prakash
From India, Bangalore
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
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