There are instances where an employee may get salary arrears for any prior year or years in the current year as a consequence of pay modification. And because one's income tax slab rate changed to a higher tax slab, the tax due for the current year could be higher. The Income Tax is on the assessee's total earnings or receipts from the previous year. There are instances where the employee receives payment for past dues as salary arrears in the current year. The income tax amount the employee would be required to pay in this situation would be higher in...
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