There are Certain expenses which are to be actually paid to claim deduction.

Last date for payment for these is the ITR Filing due date(31 July /30 September)

If these are actually paid after that date,then deduction allowed next year when payment actually made.

 

 Details of such expenses are

1. Any tax/duty/cess to be paid to government

 

2. Contribution to PF/Super Annuation/Gratuity fund

 

3. Bonus or Commission paid to Employees: -Refer 36(1)(ii)

If declared and not paid then not allowed as deduction

 

4 Interest on loan taken from Scheduled Banks/Public Financial Instituitions/State financial Corporation/State Industrial Investment Corporation etc allowed only on payment.

 

 5, Any leave salary/leave encashment paid to employees

 

Section 43B Certain Deductions Only if Amt paid - Deductions

 

 

Q 1

Proft and Loss of Ajay & Co,a proprietorship for FY 2015-16
SALES 800000
Less  
EXPENSES 500000
PROFIT 300000

Suppose Expenses Include

Interest on loan of 100000 taken from bank which was paid as follows

Date Amount
20-Feb-16 30000
30-Jun-16 50000
04-Aug-16 20000
Total 100000

Due date of ITR is 31 July 2016 but assessee filed ITR on 05-Aug-16 after paying interest

View Answer

Q 2

Solve last question assuming loan was taken from friends and relative

View Answer
  1. Income Tax
  2. PGBP Income
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.
  • Sonam Waghmare's image
    40A(3) amendment  - the single or aggregate payment in respect of allowable expenditure in excess of rs. 10000 in cash is disallowed.  Plz make correction! 
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