Actual payment basis: certain business deductions allowed only when actually paid, subject to filing-date and conversion rules. Certain categories of business expenses are deductible only on an actual payment basis: taxes and levies; employer contributions to provident, superannuation, gratuity or welfare funds; payment in lieu of leave; amounts under section 32(a); interest on loans from specified financial entities; payments for railway asset use; and delayed payments to micro or small enterprises. A post-year-end payment made on or before the filing due date permits deduction in the year of liability (except for micro or small enterprise payments). Capitalised or converted interest is not treated as payment; prior deductions preclude later claims when paid.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Actual payment basis: certain business deductions allowed only when actually paid, subject to filing-date and conversion rules.
Certain categories of business expenses are deductible only on an actual payment basis: taxes and levies; employer contributions to provident, superannuation, gratuity or welfare funds; payment in lieu of leave; amounts under section 32(a); interest on loans from specified financial entities; payments for railway asset use; and delayed payments to micro or small enterprises. A post-year-end payment made on or before the filing due date permits deduction in the year of liability (except for micro or small enterprise payments). Capitalised or converted interest is not treated as payment; prior deductions preclude later claims when paid.
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