21 October 2021
Respected sir, Actually I had shown sundry creditors of Rs 1000000/- in F Y 18-19. But still I have not paid them. Is any time limit to pay to unpaid creditors under income tax ? If i will not pay to them to some more years , what will the effect ? Is any rule to add such unpaid creditors amount to income ?
22 October 2021
1.As such no. 2. Will continue to reflect in Balance Sheet, until you add back it to P&L acc. 3. ITO may impose sec. 41(1) of it act, and add the amount to income.
22 October 2021
Usually during scrutiny, if reason for the non-payment not satisfactorily replied. No specific time limit in the act, but roughly after 7/8 years...
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