Kotak Assured Savings Plan
A plan that offer guaranteed returns and financial protection for your family.
Kotak Guaranteed Savings Plan
A plan that offers long term savings and insurance in one premium.
Kotak Health Shield
Insurance against medical expenses related to heart, brain, liver and Cancer.
As a rule, income tax applies to your total income earned or received in a financial year. However, there may be cases where you would have earned the income in another year and received it in a different financial year or got an advance salary. This income could either be salary, family pension, or any other source of earning. Such situations could impact your tax liability for the particular financial year. However, it is possible to save tax on salary arrears by availing benefits under Section 89(1).
Here is everything you need to know on how to save tax on salary arrears:
What is the relief offered under Section 89(1)?
If you receive:
The amount is taxable in the financial year it is received. However, Section 89(1) offers you the benefit to reduce your tax burden as per your salary arrears by following certain steps and fulfilling specific formalities.
How to calculate relief under Section 89(1) on salary arrears?
Once you know your tax relief, you need to file Form 10E online on the income tax e-filing portal by logging in to your account.
Important things to remember when claiming for tax relief on salary arrears
Salary in arrears can result in higher taxes than the actual tax liability. Being cautious and claiming tax relief correctly can help save tax on salary arrears.
Ref. No. KLI/22-23/E-BB/999
Ref. No. KLI/22-23/E-BB/490
