rajaguru u (Deputy Manager - Accounts) (40 Points)
18 September 2008Bonus provision paid within the return of the income is allowed u/s43B. But in the current year the return of filing in corporate is 30.09.08. Normally bonus for deepavali to be paid before 15 to 20 days. So current year the return of filing is fast but the festival behind the filing date. So the disallowance much more for the current year. Whether any notification expected from IT dept. Whether there is no way for the disallowance in the current year?
Late CA Sampat Jain
(Chartered Accountant)
(4772 Points)
Replied 18 September 2008
law is like that only
you may escape by paying in sept
or issue cheques in sept , which will be actually encashed later
navdeep
(c.a. inter)
(25 Points)
Replied 18 September 2008
BONUS IS ALLOWED AS DEDUCTION under income tax act as per provision of section of section 43B Under this section it will be allowed in the year of paid but befor the filling of your income tax reurn due dtae that is 30.09.08 for companies & firm & individuals whose turnover is more than 40 lacs & in the case of profession it is more than 10 lacs therefor bonus for the FY-2007-08 will be allowed if they are paid before 30.09.08 and this current year bonus which u are talking about if paid then it will be allowed as deduction in AY-2009-10 for the FY-2008-09.
CA Pawan Goswami
(CA)
(2928 Points)
Replied 18 September 2008
No, there is no such notification for this .
Pankaj
(tax advisor)
(41 Points)
Replied 25 February 2009
Sec 43B provides that a deduction otherwise allowable in respect of (amongst other things) any sum payable as bonus...shall be allowed (irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting regularly employed by him) only in computing the income referred to in section 28 of that previous year in which sum is actually paid by him. Provided that nothing contained in this section shall apply in relation to any sum referred to in clause (a) or clause (c) or clause (d) or clause (e) which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub-section (1) of section 139
in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee
Therefore, any sum paid as bonus before filing of IT Return u/s 139(1) shall be allowed as expense for 2008-09.
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