TaxTMI 
TaxTMI 
Certain deductions to be only on actual payment
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....g from ^41[such class of non-banking financial companies as may be notified by the Central Government in the Official Gazette in this behalf], in accordance with the terms and conditions of the agreement governing such loan or borrowing, or] ^9[(e) any sum payable by the assessee as interest on any ^10[loan or advances] from a scheduled bank ^31[or a co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank] in accordance with the terms and conditions of the agreement governing such loan ^11[or advances],] ^12[or] ^13[(f) any sum payable by the assessee as an employer in lieu of any leave at the credit of his ^29[employee, or]] ^30[(g) any sum payable by the assessee to the Indian Railways for the use of railway assets, ^42[or]] ^43[(h) any sum payable by the assessee to a micro or small enterprise beyond the time-limit specified in section 15 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006.),] shall be allowed (irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of ac....
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....e referred to in section 28 of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 1996, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.] ^34[Explanation 3AA.-For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (da) is allowed in computing the income referred to in section 28, of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 2019, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.] ^23[Explanation 3B.-For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (f) of this section is a....
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....e industrial investment corporation" means a Government company within the meaning of section 617 of the Companies Act, 1956 (1 of 1956), engaged in the business of providing long-term finance for industrial projects and ^28[eligible for deduction under clause (viii) of sub-section (1) of section 36].] ^32[(d) "co-operative bank", "primary agricultural credit society" and "primary co-operative agricultural and rural development bank" shall have the meanings respectively assigned to them in the Explanation to sub-section (4) of section 80P.] ^36[^45[(e) "micro enterprise" shall have the meaning assigned to it in clause (h) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006.);] (f) "non-banking financial company" shall have the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934.); ^46[(g) "small enterprise" shall have the meaning assigned to it in clause (m) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006).]] ^37[Explanation 5.-For the removal of doubts, it is hereby clarified that the provisions of this section sh....
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....any sum referred to in clause (b), be allowed unless such sum has actually been paid in cash or by issue of a cheque or draft or by any other mode on or before the due date as defined in the Explanation below clause (va) of sub-section (1) of section 36, and where such payment has been made otherwise than in cash, the sum has been realised within fifteen days from the due date." Earlier, Substituted vide Section 9 of the Finance Act, 1989 w.e.f. 01-04-1989 before it was read as, "Provided further that no deduction shall, in respect of any sum referred to in clause (b), be allowed unless such sum has actually been paid during the previous year on or before the due date as defined in the Explanation below clause (va) of sub-section (1) of section 36." 17. Inserted vide Section 15 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 18. Inserted vide Section 9 of the Finance Act, 1989 w.e.f. 01-04-1984 19. Inserted vide Section 15 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 20. Renumbered vide Section 9 of the Finance Act, 1989 w.e.f. 01-04-1984 before it was read as, "Explanation 2" ....