In a company auditors have not provided provision for earned leave till previous year. Now is it OK if i provide provision for earned leave as on march 2011??????
14 February 2011
The previous Auditors might have not provided provision for earned leave due to the reason that it is allowable only on payment basis U/s 43B.
While computing tax, in case you are making a provision, you have to disallow this item U/s 43B. It will be allowed in the year of payment.
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