Certain deductions on actual payment basis - (New) Section 37 / (Old) Section 43B

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....nbsp;section 2(49)(o). [ Section 37(6) ] Meaning of Sum Payable [ Section 37(8) ] • "The sum payable" means a sum for which the assessee has incurred liability in the tax year even though such sum might not have been payable within that year under the relevant law. Following sum payable are allowed when it is actually paid [ Section 37(2) ] • (a) Taxes, duties, cess, fees, etc. • tax, duty, cess, surcharge or fee, by whatever named called, levied under any law in force; • (b) Employer contributions to employee welfare funds • contribution of the employer to a • provident fund or • superannuation fund or • gratuity fund or • any fund for the welfare of employees; • (c) Leave encashment liability • amount payable by employer in lieu of any leave at the credit of the employee; • (d) Bonus or Commission referred to in section 32(a) • bonus or commission paid to an employee for services rendered, • Except - when such amount would not have been payable to the employee as profits or d....

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....is made: • after the end of the tax year, but • on or before the due date of filing the return under section 263(1), • then the deduction is still allowed in the same tax year in which the liability was incurred. [ Section 37(3) ] Under Section 43B of the Income Tax Act, 1961 [ Upto 31.03.1961 ] Notwithstanding anything contained in any other provisions of the Income Tax Act, a deduction otherwise allowable under the Act in respect of - • Clause a. any tax, duty, cess or fee, by whatever name called, payable under any law for the time being in force, or • Clause b. employer's contribution to provident fund, gratuity fund or any other fund for the welfare of the employees, or • Clause c. any bonus or commission payable to the employees, or • Clause d. interest payable on any loan or borrowing from any public financial institution or a State Financial Corporation or State Industrial Investment Corporation like IDBI, IFCI, UPSIDC, Delhi Financial Corporation, etc., or  • Clause da. interest on any loan or borrowing from a deposit taking non-banking financial company or sy....

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.... • Turnover does not exceed Rs. 5 crore; • Small enterprises • Investment in plant and machinery or equipment does not exceed Rs. 10 crore rupees and • Turnover does not exceed Rs. 50 crore. • Verification of MSME Registration Certificate - • Go to - MSME Registration site ( https://udyamregistration.gov.in )  • Go to - Print/ verify - click on verify udaym registration number; or • click on this inke https://udyamregistration.gov.in/Udyam_Verify.aspx. [ Inserted by FA 2023 ] shall be allowed as deduction only in the previous year in which such sum is actually paid by him. This is irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting employed by him. Nothing contained in this section except the provisions of clause (h) shall apply in relation to any sum which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under section 139(1) in respect of the previous yea....

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....eduction if the same is deposited by the employer on or before the due date mentioned in respective Acts. • The deduction in respect of above sum will be allowed to the assessee u/s 36(1)(va) only if such sum is credited by the assessee to the employee's account in the relevant fund on or before the due date, being the date specified under the relevant act. • As per section 43B, any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees, would be allowable during any P.Y. if the same has been paid or before the due date applicable in his case for furnishing the return of income u/s 139(1) in respect of that P.Y.  Meaning of Important Term • 'co-operative bank' 'primary agricultural credit society' and 'primary co-operative agricultural and rural development bank shall have the meaning u/s 80P(4).  • "deposit taking non-banking financial company" means a non-banking financial company which is accepting or holding public deposits and is registered with the Reserve Bank of India ....