SECTION 43B

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2010 As we all know section 43B of Income Tax Act,1961 deals with deduction in respect of unpaid liability,till we not paid the statutory liabilities we cant get deduction but my query is suppose my statutory liabilities(some part) for the financial year 2005-06 was Rs.1000000 in these financial year we cant provide this liability in the books of accounts thats why payment question doesnot arise and also 43b disallowable question also doesnot arise but now in present financial year 2010-11 if we want to provide this liability of rs.1000000 and if payment should be made then can we claim deduction u/s 43b as this liability is pertaining to 2005-06 which was not provide and paid.

CA. R. B. SAH

CA. R. B. SAH (Expert)
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15 December 2010 can not be allowed.

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2010 Mr.Ram bahadur shah can u pls explain why its disallowed ???

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CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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15 December 2010 Are you booking it as prior period expenditure. If yes 43B will be applicable.

Otherwise , it may directly be claimed in the year 2010-11.

CA. R. B. SAH

CA. R. B. SAH (Expert)
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16 December 2010 because expenses should be releted to the respective A.Y. All the prior period expenditures are disallowed. section 43B does not apply in case of prior period expenditure.