Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

40a(7) and 43b

pragadeeshkanna (searching) (281 Points)

17 June 2013

Correct me if I am wrong. Disallowance u/s 40A(7) is when gratuity provision paid to a unapproved fund and 43B is when provision for gratuity is not paid to the approved fund before the due date of filing the returns. If it is disallowed u/s 40A(7), will it be allowed in the AY when the fund is approved.

Reply
Follow
Share

2 Replies

Gowrish Baliga B. (Chartered Accountant) (110 Points)
Replied 17 June 2013

Please not under section 40 A (7) disallowance is for provision created. Its not for any payment made towards Gratuity.Whereas under Section 43B disallowance is for not paying the statutary dues within prescribed time.

Upgrade to CAclubindia Pro. Subscribe Now!

Pushpender Kadian (Student) (28 Points)
Replied 27 June 2013

Exemption u/s 54 is available subject to fulfillment of the following requirements:
(i) The transferor shall be an individual or the HUF,
(ii) The asset to be transferred must be of long-term capital asset, being buildings or lands appurtenant thereto, being a residential house,
(iii) The income from such residential house shall be assessable under the head "Income from House Property",
(iv) The transferor assessee should purchase a residential house in India within a period of one year before or two years from the date of transfer or construct a residential house within three years from the date of the transfer of the original house. (Construction must be completed within these 3 years.), and
(v) The new house property purchased or constructed has not been transferred within a period of three years from the date of purchase or construction.