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
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
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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.