CA Shashikumar PN (Consultant - Taxation) (264 Points)
22 November 2012Hi, can anyone confirm me along with refrence to IT Act ,
Following is the status in 43B item
Pre existed liability as on 01.04.11 - Rs.4 crore
Amount incurred during the year - Rs.2 crore
Amount before filing of returns - Rs.2.55 crore
Not paid on or before the due date(30.11.12) - (55 lakhs)
Now, whether we can claim this excess payment of Rs.55 lacs in return of AY 12-13,,?? Is it restricted to provision made??
Thanks in advance.
Saket Sinha
(Student)
(129 Points)
Replied 22 November 2012
As per sec 43B deduction shall be available only when payment is made therefore , if payments are covered under sec43B the deduction shall be available on paym ent made it has nothing to do with the provision made . Provision making is statutory obligation under accountiong standard issued by ICAI . This differenced leads to creation og deferred tax asset and deferred tax liability.Therefore, deduction is to be made on payment basis. hence if 2.55 lacs has been paid this year it has to fully allowed under thi Income tax act,1961 because at the time provisioning the amount of 4lacs has been disallowed.
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