Allowability of working capital interest u/s 43b

This query is : Resolved

CA Gaurav Ajit Potdar (Querist)
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22 August 2015 One of our client a private limited Company has defaulted in payment of Interest (Working capital loan) the details of the same are as follows. Interest due on June 2012 Say 1,00,000/- ie for FY 12 - 13 if Paid on June 2014. Return filled in november 2014. allowing the same under sec 43b Please opine wether the above treatment is correct. Please also provide the the relevant tax provisions.

Prakash Kochar

Prakash Kochar (Expert)
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30 August 2015 Any int. payable against loan if not paid before due date for filling return will not be allowable- sect. 43-B (e) r.w.proviso.
Int. was due for Fy 12-13, if not paid before due date for filling return, for AY 13-14, is not allowable as deduction. Same is allowable in FY in which payment is actually made.