Tax audit report

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chirag nagpal (Querist)
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24 September 2015 What amount should b report in form 3CD point no. 26(B) (a),??????

Whole amt incurred and paid during the previous year on or before due date of ROI u/s 139 or only that portion of expense which were outstanding as on 31st march and paid before the due date of ROI.???????????????

suppose whole year bonus exp is 100000 and paid before 31st march is only 60000 and paid 20000 later on or before the due date of roi.

what amount should be reported in 26(B)(a) in 3CD Form.

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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24 September 2015 if Bonus is paid before the date of filing of the return, entire expenditure is allowed. Hence it may not be mentioned there as disallowed portion is NIL

chirag nagpal

chirag nagpal (Querist)
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24 September 2015 Sir please be specific, what amount should be reported in point no. 26(B)(a) according to above example.

chirag nagpal

chirag nagpal (Querist)
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24 September 2015 Sir please be specific, what amount should be reported in point no. 26(B)(a) according to above example.

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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27 September 2015 In your case first paid 60000 is allowable. Then rs 20000 paid before due date of filing is also allowed. The remaining portiin of (100000-60000-20000) ie Rs 20000 is not allowed

chirag nagpal

chirag nagpal (Querist)
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27 September 2015 sir my query is not about t the allowable or not allowable in profit and loss account,
my query is only all about to the reporting purpose in tax audit report,

in clause 26 (B) (a) of form 3CD, the required information is, report that amount which are incurred in the financial year and paid on or before the due date of filing ROI.

i repeat that my confusion is what portion of expense is report whole expense which is incurred in fy and paid before due date or only outstanding portion of expense which is stand payable as on 31st march.

this is highly appreciated if u reply with the help of my above practical example in terms of amount.

chirag nagpal

chirag nagpal (Querist)
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Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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26 July 2025 You're absolutely right to ask for clarity on this point — **Clause 26B(a)** of **Form 3CD** under **Section 43B** is often misunderstood in terms of **reporting format**, not just allowability.

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## ✅ **Your Precise Question:**

> In Clause 26B(a), should we report:
>
> 1. The **entire expense incurred** during the FY and paid before the due date of filing return,
> **or**
> 2. **Only the portion outstanding as on 31st March** and paid before the due date of filing ROI?

---

## 🔍 **Clause 26B(a) of Form 3CD — What It Says:**

> "Amounts debited to profit and loss account, being **items covered u/s 43B**, **paid on or before the due date** for furnishing the return of income under section 139(1)."

👉 It **asks for all amounts (of 43B items)** that were:

* **Debited** to P\&L **during the year**
* **And paid** on or before the **due date of ROI filing (u/s 139(1))**

✅ **It does not require the amount to be outstanding as of 31st March.**

---

## 🧾 **Your Example:**

| Particulars | Amount |
| ------------------------------------------------- | --------- |
| Total Bonus Expense (incurred & debited to P\&L) | ₹1,00,000 |
| Paid during FY (before 31st March) | ₹60,000 |
| Balance paid before ROI due date (say, 30th Sept) | ₹20,000 |
| Remaining unpaid as of ROI due date | ₹20,000 |

---

## 🟢 **Correct Reporting in Clause 26B(a):**

> **Report ₹80,000** — i.e., the **total bonus expense paid on or before the due date of filing the return**, whether paid during the year or after year-end **up to ROI due date**.

---

### ✅ **Final Answer:**

> **In your case, Clause 26B(a) of Form 3CD should report: ₹80,000**
> (i.e., ₹60,000 paid before 31st March + ₹20,000 paid after 31st March but before due date of ROI).

You do **not** restrict the reporting only to amounts **outstanding on 31st March** — you include **all 43B expenses incurred in the year** and paid **by ROI due date**.

---

Let me know if you'd like a filled sample of **Clause 26B(a) and (b)** in table format for your records.

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