Income Tax payable on Reversing Pay Arrears Provision in FY 2024-25
This query is : Resolved
29 July 2024
I need some guidance on a tax matter. We made a provision of Rs 23 crores in March 2021 for differentiated salary payable to employees. We're now planning to reverse this provision. Could someone please explain the income tax liability associated with this reversal? Specifically, I'm interested in the treatment under the Income Tax Act and the applicability of interest under sections 234A, 234B, and 234C.
29 July 2024
Provisions will not be allowed as expenses under income tax.
Check the income tax calculation for 2020-21.
Treat it as current year income if claimed in earlier year, interest not applicable.
Interest applicable only in case of revision of assessment for 2020-21.
Check the income tax calculation for 2020-21.
Treat it as current year income if claimed in earlier year, interest not applicable.
Interest applicable only in case of revision of assessment for 2020-21.
31 July 2024
if is allowed then tax burden amount ?
31 July 2024
if it is allowed then tax amount pl ?
31 July 2024
Treat it as current year income only tax payable.
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