Tax audit - Section 43B

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Kamal (Querist)
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11 September 2009 For tax audit purpose whether leave encashment is mandatory to be disclosed in Clause 21 for limited companies.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 September 2009 Yes as it is covered u/s 43B (f)

CP Ram

CP Ram (Expert)
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11 September 2009 Yes, as per section 43B of the Income Tax Act, 1961, Leave Encashment shall be allowed to be deducted only if the payment is made within the due date for filing the return of income u/s 139(1)..

Therefore, leave encashment need to be shown in clause 21 of the Form-3CD.

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Kamal

Kamal (Querist)
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11 September 2009 But in the case of Bharat Earth Movers vs CIT[2000] 245 ITR 428(SC)43B(f)is struck down. So what is the actual stand now on 43B(f)?