Urgent : regarding sec 43b

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 Please suggest the treatment of Professional Tax paid w.r.t Income Tax:

Professional Tax of FY 2009-10 Rs 2500/- & FY 2010-11 Rs 2500/- paid both on Aug. 2011.

My query regarding this is "whether the professional Tax of FY 2009-10 which is paid on Aug 2011 will be allowed as deduction in the Income Tax Return of FY 2010-11/ AY 2011-12?????

Pls reply soon

thanks

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 September 2011 If it is a company, the payment has been made before the due date. Accordingly, the same will be allowed as expenditure in the AY 11-12.

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 but sec 43B says that the same will be allowed in the year in which it is paid.....

According to me the Professional Tax of FY 2009-10 will be allowed in the next FY 2011-12. i,e AY 2012-13

If i am wrong then please correct me with possible reason.

Thanks

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 September 2011 There is an exception to Section 43B which provides that if the amounts mentioned in Section 43B are paid before the due date of filing of return, the same will be allowed in the same year.

However, professional tax of FY 09-10 will be allowed in the FY 11-12.

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 thanks i am concerned more on the PT of FY 2009-10.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 September 2011 That will be allowed only in the year of payment because it has been paid even after the due date of filing of return for PY 09-10.

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