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minal joshi (Querist)
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04 August 2011 When we make a provision for employee benefit of Rs.20.00 Lacs in balance sheet but before filing income tax return actual figure comes out to be Rs. 24.00 lacs. then what amount we should take as deduction from our profit. and how we take effect of it in our books of account

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 August 2011 The provisions are in respect of accrued liabilities. Accrued Deductible Expenses can be claimed in the Return pertaining to the previous year, whether provided in the books or not , as the same will not be allowed in the subsequent year on the concept of accrual.
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In the next year extra provision of Rs 4.00 lac has to be made by debiting the P&L A/c of the next year only.
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However, the expenditure claimed once, should not be claimed twice.

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