27 April 2016
yes ,shall be allowed (irrespective of the previous year in which liability is incurred according to the method of accounting followed) in computing the business income in the previous year in which it is actually paid - section 43B.
However, if the same is paid on or before applicable due date of filing the return for the previous year in which liability to is incurred (for all subsequent year(s) it will be allowed in the year of payment), and proof of payment is attached to the return, the same will be allowed in the year of accrual - first proviso to section 43B.
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