What is 43B in an Indian Taxation?




Answers were Sorted based on User's Feedback



What is 43B in an Indian Taxation?..

Answer / r.sivaraman

Under Sec 43B of Indian Income Tax Act, 1965
express "Certain deductions to be only on actual payment"

(a) any sum payable by the assessee by way of tax11a, duty,
cess or fee, by whatever name called, under any law for the
time being in force, or

(b) any sum payable by the assessee as an employer by way
of contribution to any provident fund or superannuation
fund or gratuity fund or any other fund for the welfare of
employees, or

(c) any sum referred to in clause (ii) of sub-section (1)
of section 36,or

(d) any sum payable by the assessee as interest on any loan
or borrowing from any public financial institution or a
State financial corporation or a State industrial
investment corporation, in accordance with the terms and
conditions of the agreement governing such loan or borrowing

(e) any sum payable by the assessee as interest on any
[loan or advances] from a scheduled bank in accordance with
the terms and conditions of the agreement governing such
loan or advances or

(f) any sum payable by the assessee as an employer in lieu
of any leave at the credit of his employee,

shall be allowed (irrespective of the previous year in
which the liability to pay such sum was incurred by the
assessee according to the method of accounting regularly
employed by him) only in computing the income referred to
in section 28 of that previous year in which such sum is
actually paid by him

Is This Answer Correct ?    58 Yes 6 No

What is 43B in an Indian Taxation?..

Answer / vijay

ya

Is This Answer Correct ?    16 Yes 6 No

What is 43B in an Indian Taxation?..

Answer / cavkss

Broadly section 43B of Income Tax Act 1961 entails ‘Deductions only on Actual Payments’.
While computing income under the head Profits and gains of business or profession (PGBP), some of the expenses are allowed and can be claimed by the assessee only in the year in which the payment is actually made. This is irrespective of the previous year in which the liability to pay such sum was incurred by the assessee. Section 43B overrides all the sections in Income Tax Act, 1961.
Allowed under this section:
a) tax, duty, cess or fee, (by whatever name called, under any law for the time being in force);
b) contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees;
c) bonus or commission to employee for services rendered
d) interest on any loan or borrowing from any public financial institution or a State financial corporation or a State industrial investment corporation, in accordance with the terms and conditions of the agreement governing such loan or borrowing;
e) interest on any loan or advances from a scheduled bank or (wef A.Y 2018-19 from a co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank) in accordance with the terms and conditions of the agreement governing such loan or advances
f) in lieu of any leave at the credit of his employee.
g) to Indian Railways for the use of railway Assets (wef A.y 2017-18)-Section 43B to include certain payments made to Railways

Exception- When deductible on accrual basis
The exception is applicable if the following three conditions are satisfied:
1. Assessee keeps books of accounts on mercantile basis
2. Payment in respect of aforesaid expenses is actually made on or before the due date of submission of return of income under sec 139(1)
3. The evidence of such payment is submitted along with return of income. However no annexure is possible with the new ITR forms. Such evidence should be maintained by the assessee and produced to Assessing officer as and when needed.

For further clarification, mail to cavkss@gmail.com

Is This Answer Correct ?    0 Yes 0 No



Post New Answer



More Taxation Interview Questions

Why Issue a C form to seller & what is form no.49

8 Answers   ABC, Apex,


what is the size of balance sheet ?

2 Answers  


WHAT IS THE RAE OF TDS ON PAYMENT TO CONTRACTOR INA CASE OF COMPANY & IN CASE OF INDIVIDUAL?

3 Answers   ABC,


we are purchasing kraft paper is there any question entry tax over kraft paper as per the orissa entry tax rules. and if so what is percentage of entry tax.

0 Answers  


Hello all , I have a doubt regarding TDS.My salary ranges between 22k to 26 k per month and i have a TDS component cut every month.My doubt is that what is the % of tax ? what are the ways i can get back my TDS and what are the methods that can help reducing tax .And my another doubt is that whether the tax is calculated only on the basic pay or on the whole salary I get ? because my salary has HRA in its component ,will that also be counted in tax calculation or excluded ?

1 Answers   Construction,






what is tcs

2 Answers  


How much can I save U/S 80D to minimise my Tax Burden

2 Answers  


Any body plz guide me. I have making a invoice of 4% sales tax rate but actual rate of sales tax 5%.

1 Answers  


How to entry pass tds of sundary debotors

2 Answers  


witch one is the best book of Tax preparation tell me as soon as waiting for ur reply .

1 Answers  


If We received Purchase bill for Rs. 67320 2% CST ( Ta Rs. 1320 on Assessable value of Rs. 66000/- ) against Form C but while making payment we had paid as per 12.50 % Tax amount i.e. 8250 . Total paid Rs. 74250/- then is it necessary to give Form C to the party?

2 Answers   SK Enterprises,


For the assessment year 2011-12, ie., FY 2010-11, is there cess on TDS for Professional fees ?

3 Answers  






Categories