06 December 2008
DISALLOWANCE OF UNPAID LIABILITY Sec. 43B will be applicable only in case if the assessee maintain books of accounts on mercantile basis. that means if you are not maintaining books of accounts or maintaining on cash basis then 43B will not be applicable in your case.
There are some expenses which are deductible on payment basis while computing your tax liability.
These expenses are Tax, Duty, Cess or Fees, Employers contibition to PF and Superannuation fund, Bonus or Comm. to employees, Intt. on loans/borrowings from financial inst., Intt. on loans fron scheduled banks or corp bank and any sum paid by employer in lieu of leave of employees.
These types of expenses if shown payable in your books of accounts will be allowed only they are paid on or before the due date of submission of your income tax return. You also need to submit the proof of payment along with your return of Income.
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