{"id":4541,"date":"2026-05-29T22:02:12","date_gmt":"2026-05-29T22:02:12","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4541"},"modified":"2026-05-30T02:53:18","modified_gmt":"2026-05-30T02:53:18","slug":"arrears-zoho-payroll","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/arrears-zoho-payroll\/","title":{"rendered":"Arrears"},"content":{"rendered":"<style>\n.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}\n.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}\n.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}\n.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}\n.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}\n.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}\n.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}\n<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">Arrears in Zoho Payroll are retroactive salary adjustments paid to employees when a salary revision, promotion, or correction takes effect from a past date but is implemented in a later pay run. The arrears amount equals the difference between what should have been paid and what was actually paid, covering each month in the backdate period.<\/div>\n<div class=\"gt-section\">\n<h2>Calculating Arrears in Zoho Payroll<\/h2>\n<p>When a salary revision is applied with a backdated effective date, Zoho Payroll can automatically compute the arrears for each month in the backdate period. The system calculates the difference per month between the new salary and the old salary and sums the total. This amount is then added as a one-time earning in the current pay run.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Tax Treatment of Arrears (Section 89 Relief)<\/h2>\n<p>Arrears received in one financial year for services in prior years can result in higher tax liability due to tax slab bunching. Section 89(1) of the Income Tax Act allows employees to claim tax relief by filing Form 10E. Zoho Payroll generates an arrears breakup report that employees can use to calculate and claim this relief when filing their income tax return.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Arrears and Form 16<\/h2>\n<p>Arrears paid in the current year for prior periods are included in the gross salary for the current year&#8217;s Form 16. If the arrears relate to a prior financial year, they are separately identifiable in the payroll reports generated by Zoho Payroll, helping the employee and employer manage the correct tax filing.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Example:<\/strong> An employee receives a salary revision from Rs 40,000 to Rs 45,000 per month effective April 1, but it is implemented in the June pay run. Arrears = Rs 5,000 x 2 months (April and May) = Rs 10,000. Zoho Payroll adds Rs 10,000 to June&#8217;s pay run as arrears, computes TDS on the higher June gross, and generates the arrears report for Section 89 relief.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/pay-run-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Pay Run<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/lop-reversal-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">LOP Reversal<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/tds-on-salary-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">TDS on Salary<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/form-16-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Form 16<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What are Arrears in Zoho Payroll?<\/strong><\/p>\n<p>Arrears in Zoho Payroll are retroactive salary payments for past periods where compensation was lower than entitled. They arise when salary revisions are backdated. Zoho Payroll calculates the difference for each backdate month and adds the total as a one-time earning in the current pay run.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>Are arrears taxable in Zoho Payroll?<\/strong><\/p>\n<p>Yes, arrears are taxable in the year they are received. However, Section 89(1) of the Income Tax Act provides relief if the arrears relate to prior years and cause a higher tax burden. Zoho Payroll generates an arrears breakup report that employees can use to file Form 10E and claim Section 89 relief.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Arrears in Zoho Payroll are additional salary payments made to employees for past periods where compensation was lower than it should have been, typically due to delayed salary revisions.<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Arrears | Zoho Payroll Glossary","seo_description":"Arrears in Zoho Payroll are additional salary payments made to employees for past periods where compensation was lower than it should have been, typically","seo_keyword":"arrears zoho payroll","seo_faqs":"[{\"q\": \"What are Arrears in Zoho Payroll?\", \"a\": \"Arrears in Zoho Payroll are retroactive salary payments for past periods where compensation was lower than entitled. They arise when salary revisions are backdated. 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Zoho Payroll generates an arrears breakup report that employees can use to file Form 10E and claim Section 89 relief.\"}]","term_type":"Business","glossary_related":"","glossary_links":""},"glossary_category":[1250],"class_list":["post-4541","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-payroll"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4541"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}