Loophole of section 43(b)-actual payment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 May 2016
our organisation has deducted tds after considering leave encashment for the financial year 2015-16.
But actual payment of the same has not yet been received and is generally received in the month of oct-nov.
However in the books of accounts cash payment has been shown.
And co escapes from levy of section 43(b)
why such loophole is there in the provision???????
But actual payment of the same has not yet been received and is generally received in the month of oct-nov.
However in the books of accounts cash payment has been shown.
And co escapes from levy of section 43(b)
why such loophole is there in the provision???????
11 May 2016
There is no loophole in the provision. Provision of Section 43 (b) clearly states any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee shall be allowed as deduction only in the previous year in which such sum is actually paid. This is irrespective of the previous year in which the liability to pay such sum was incurred by the assessee.
Here as you said that your employer has shown the cash payment in the books however in actual he has not paid. So here your employer is adopting wrong policies & it is contrary to law.
Here as you said that your employer has shown the cash payment in the books however in actual he has not paid. So here your employer is adopting wrong policies & it is contrary to law.
11 May 2016
as 43(b) its deductable when you make payment before date of filing of income tax return.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 1: Details for showing Exempt Income
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 2 Short Term gain & Long term gain
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- TDS 194R on GST effected
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
