ITR
Arrears showing as extra salary in AIS
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Facts
The employer reports arrears as part of salary paid in the year, so AIS shows the higher amount. That is correct. Report the full salary in the ITR and claim Sec 89 relief through Form 10E.
Provisions and law
- Sec 89 (now Sec 157)Relief when salary or family pension is received in arrears or in advance
- Sec 285BB (now Sec 510)Annual Information Statement
Analysis
If AIS shows ₹16,00,000 including ₹2,50,000 arrears, report ₹16,00,000 as salary. Do not reduce salary by the arrears; that creates a mismatch. The relief is claimed separately in the tax computation. Keep the arrears statement ready if asked.
Conclusion
- Report full salary as in Form 16 and AIS
- File Form 10E for the arrears
- Claim relief in the tax computation
- Keep the arrears statement
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