In a company, there is disallowed Leave encashment provision of earlier years (created after 2005-06). Also, there is a provision created in the previous year 2011-12. Leave encashment payments were made to resigned employees, both during 2011-12 and also till September 2012. For claiming deduction under Proviso to section 43B, i.e. for leave encashment payments made after 1st April 2012 till 30th September 2012, is it necessary that they are out of the provisions made in the previous year 2011-12 only or can it be from the provisions made in the earlier years too? It is very difficult to segregate each payment like this, since the number of such payments is very high.
In case, the answer is that it can be out of the earlier years' provisions too, then how does Form 3CD support this?
In case, if the answer is that it has to be only out of provisions made in 2011-12, then can these payments be claimed only in the next year?
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