Payment of pli after return date
This query is : Resolved
25 September 2016
a govt company declared profit linked incentive to its employees.
and made provision for the same and claimed deduction in respect of the same.
now the payment of the said PLI is going to made after the filing of return i.e, after 30 sept.
agm will happen on 28 - Sept.
now my question is whether the expense related to PLI is allowable under income tax for the current year or the same is allowed as prior period item next year. since the payment is made after return filing.
please mention related section and case
and made provision for the same and claimed deduction in respect of the same.
now the payment of the said PLI is going to made after the filing of return i.e, after 30 sept.
agm will happen on 28 - Sept.
now my question is whether the expense related to PLI is allowable under income tax for the current year or the same is allowed as prior period item next year. since the payment is made after return filing.
please mention related section and case
CA Sumiit B Nagpal
(Expert)
25 September 2016
Not quite sure about any similar case but department can treat it at par with Bonus and can disallow the same as per the provisions of Section 43B.
Soumitra Basu
(Expert)
28 September 2016
SECTION 43B WILL APPLY IN THIS CASE AND THE BONUS WILL BE DEDUCTIBLE ONLY IN THE YEAR OF PAYMENT OR BEFORE DUE DATE OF FILING ROI.
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