If it is in nature of profit or dividend but disguised as bonus/commission,then deduction not allowed


Also as per Section 43B,

It should be actually paid till Return filing date,otherwise deduction not available(Refer Section 43B)

If declared but not paid till then,then no deduction.

Bonus and Commission paid to employees - Important Sections Of PGBP

  1. Practical Income Tax
  2. Corporate Income Tax

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.