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Provision for salary

ashok gupta (67 Points)

16 January 2020

provision for salary is admissible under income tax or not

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SHIVANI KUDTARKAR (511 Points)
Replied 16 January 2020

Not admissible.
Salary expenses are allowed to be claimed subject to section 43B i.e. on actual payment basis.
The only provision allowed is provision for gratuity which becomes payable.

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RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 16 January 2020

@ Mr Ashok Gupta.,

Are You asking about Employer's account or Employee's Salary...?

ashok gupta (67 Points)
Replied 16 January 2020

@ raja about employer's account

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 16 January 2020

Yes... You can provide Provision of Salary in the end of the month. It's admissible under income tax...

CA Arun Tiwari (Partner) (4130 Points)
Replied 20 January 2020

The only salary paid or incurred in the current year is deductible from current income and any provision for future salaries shall not be admissible as deduction as a business expense under Income Tax and if it is already claimed as a deduction it will be disallowed by AO in future.

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