Tax Implication on Salary Arrears of Late Person

[PRIYAM KHAMBHATA]

Respected Sir

One of my client, who is Salaried person under State University, and his wife was also employed under State University. Both are earned Salary Incomes from State University. My client wife was expired before 1.5 years and Salary Arrears of Rs.4.2 Lakh declared by State University in respect of the years, when she was alive. Now my question is that such Salary Arrears of late person, how would be taxed and whether it is to be clubbed with her husband Salary Income or it would be exempt from tax

Please guide me

AI Summary

Salary arrears after an employee's death raise taxability, spousal clubbing, and exemption questions for prior service.
Tax treatment of salary arrears attributable to a deceased employee's prior service is in issue where a State University declares arrears after her death for years in which she was alive and employed. Consideration is sought on whether the declared arrears retain the character of taxable salary income, may be included or clubbed with the husband's salary income, or qualify for exemption because the employee has died.