Dear Collegues,
I have query on Bonus to be allowed U/Sec 43 B.
For example i have made provision for Bonus during the FY 12-13 Rs. 10M and subsequently i have paid is Rs. 8 Mn & remaining provision of Rs.(2Mn) is reversed in books.
Can any one clarify on how much i will get the deduction
Will it be Rs. 10 M or 8 Mn as section says only on payment basis but i heard that even subsequent reversals also allowed as deduction
please read the following:
Notwithstanding anything contained in any other provision of this Act*, a deduction otherwise allowable under this Act in respect of—
any sum payable as bonus or commission to employee for services rendered;
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.
so deduction for 8 months only is allowed.
CAclubindia
