GEETA MISTRY (ca final Student) (171 Points)
01 June 2011In 3cd Clause 21(b) i.e. sec.43B which Government Payment Shuold be reported?
1- Liability whose Provision has been made on 31st march of previous Year & Payment made within due date of statutory liability ?
2- Liability whose Provision has been made on 31st march of previous Year & Payment made after due date of statutory liability but before filling due date of incoem tax return u/s 139(1)?
please reply as i am very confused in above point.
Viren
(Chartered Accountant)
(137 Points)
Replied 01 June 2011
The information required under clause 21(i)(B) is for the purpose of allowing the deduction of such sum as per the first proviso to section 43B in respect of payments made after the end of the previous year but before the due date of filing return of income.
As such, reporting under clause 21(i)(B) is required only in respect of the amounts referred to in clauses (a), (c), (d) or (e) of section 43B which were incurred in the previous year but were outstanding as at the end of the relevant previous year.
*(i) In respect of any sum referred to in clause (a), (c), (d) (e) or (f) of section 43B, the liability for which:
(A) pre-existed on the first day of the previous year but was not allowed in the assessment of any preceding previous year and was
(a) paid during the previous year
(b) not paid during the previous year
(B) was incurred in the previous year and was
(a) paid on or before the due date for furnishing the return of income of the previous year under section 139(1)
NOTE: Information given under clause 21(i) (B) is only up to ……… and does not include any payment which the assessee may make subsequently before the due date of filing of the return of income under section 139(1).
Ashish Sharma
(Sr. audit assistant)
(30 Points)
Replied 01 June 2011
Hey Geeta,
First of all what to be reported, is any statutary payment (like PF, ESI, TDS) not made,on or before the due date u/s 139(1), payment which are made before the date mentioned in 139(1), may be certified by the management and details may not be furnished.
practicaly what I do for Clause 21(i)B is I provide details for statuary payment due on the first day of previous year, its subsequent payment in the previous year, liability unpaid during the previous year,
further details of liability incurred during the relevant previous year and remained unpaid on the return filling date shall also be furnished.
show these details in an annexure format for better representation and clear understanding...
Hope this will help you
Thankyou,
Regards
Ashish sharma
Gourav Kapoor
(CA Final Student)
(2977 Points)
Replied 01 June 2011
yar bahut sidhi c baat hai....
sec 43 B kehta hai agr 31st march ko apke koi taxes accounts me due hain to vo before filing of return of income pay ho jane chahiye.....agr nai pay hote to jitne unpaid honge utne disallowed ho jayenge....
means ye hua k agr return file krne k baad pay kie to vo next year me allowed ho jayenge....
expenditure 6 hain vo to tume pta hi hoga....
i think nw ur concept wil be clear on 43 B
Regards
Gourav
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