What is 43B in an Indian Taxation?
- 3 Answers
- 20736 Views
- Genpact, GET Engineering Construction, I also Faced
- E-Mail Answers
Answer Posted / 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 View All Answers
how we creat e-vat return in tally for punjab
Please advise where to enter Income tax paid to Govt. in tally and on which head account to be created///
what is the scope of business taxation in private company?
HOW THE INTEREST WILL BE CALCULATED IF WE MAKE INCOME TAX RETURNS LATE AND WHAT IS MEANT BY YEAR END?
can i adusted our vat credit in W.C.T. payable?
when we want bought a new asset (for ex. car)how we calculate our income with the eye of income tax
how to generate H-form and procedure for generate?
what is sales tax assesment or annuel return company and how to do end of the finiancial year and what is form no 240.
How calculate Rent income exemptions from taxable income under income tax act.isnn't 30% of total income???? plz explain with example?
Hi, I am a VAT/CST dealer in Pune. I had got a work contract with other AP state government. can i purchase material in AP state on 2% CST on issuing 'C' form and supply the same material to the AP state government on VAT /CST 5%. As the government departments are not issuing 'D' forms. please guide.
why VAT not charged in deemed sales bill.
is there in india the rate of work contract are same in all states if now what are the statewise rate
how to caluclate the mumbai tax with example? what is mean by credit and debit ?
'A' is running a manufacturing set up. 'B' sends raw material (after paying CST) to 'A' for manufacutre of his specified product and 'A' keeps 'B's stock in his godown. Can 'A' buy this material from 'B' by raising a CREDIT MEMO and in the books regularises by passing Journal Entry Dr.Raw material inventory and Cr. 'B's Account.
what is the percentage of W.C.T T.D.S to deduct from vendor, and is this includes T.D.S deduction or again T.D.S has to deduct separately?
