What is Crux of section 43B of income tax

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Daya

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20 March 2023 what is crux of section 43b of Income Tax.

Dhirajlal Rambhia online

Dhirajlal Rambhia online

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20 March 2023 Section 43B of Income Tax Act, 1961 provides that for the purpose of claiming deduction in the relevant previous year in which the expenditure is incurred, the specified sums have to be paid by the assessee on or before the due date for furnishing the return of income under section 139(1) in respect of the previous year in which the liability to pay such sum was incurred and the evidence of such payment is furnished by the assessee along with such return.
Section 43B disallows the sum which are not paid in the financial year as well as not paid before due date of filing income tax return. It states the specified expenses that can be claimed as deduction from the business income only in the year of actual payment and not in the year when the liability to pay such expenses is incurred.