TaxTMI 
TaxTMI 
Discrimination in deductions of sums covered us 43B and payment of TDS/TCS within different last dates for filing ITR. An option can be allowed to non-audit cases to make estimated claim for payments.
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....iscrimination in deductions of sums covered us 43B and payment of TDS/TCS within different last dates for filing ITR. An option can be allowed to non-audit cases to make estimated claim for payments.<br>By: - DEV KUMAR KOTHARI<br>Income Tax<br>Dated:- 8-10-2026<br>Provisions of S 43B and 139.1 and TDS / TCS deposit and tax audit Last date for filing ITR by people having income from business - u....
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....nder presumptive income, non-audit cases and audit cases for AY 2026-27 was 31st August, 2026 The last dates for filing ITR for Assessment Year (AY) 2026-27 for business income where audit is required is extended to 21 November 2026. And Transfer Pricing and Audit Cases is 30 November 2026 Section 43B: Under provisions of S.43B certain sums remaining unpaid as on 31st March are allowed....
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.... if they are actually paid before due date. Some amounts from which TDS and TCS is made but not paid till 31st march can be fully claimed if TDS/TCS is deposited before the due date for filing of ITR. Discrimination: Due to different last dates for filing of ITR the period available to make payment for allowability of such sums based on payments is also applicable differently according to....
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.... the last date allowed for filing of ITR. Although there may not be any operational difference in businesses of three different class of assessee based on last date of ITR filing. In fact non audit cases are smaller assessee in comparison to audit cases. An individual or a firm doing similar business and in same volume is not required to get accounts audited, whereas in case of one man pe....
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....rson company and LLP audit will be required. Merely because the assessee is required to get accounts audited is allowed extra period to deposit sums covered u.s. 43B and to deposit TDS and TCS whereas in non audit case the short period is allowed. Requirement of Tax Audit is also relaxed and one may not be required to get TAR, if his business activities are mostly (95%) by way of banking cha....
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....nnels for payments and receipts. This is a discrimination not justified and is not based on intelligent and reasonable classification. Is it Truly Discriminatory - two possible views: Element Non-Audit / Presumptive Assessees Tax Audit Assessees ITR Due Date 31st August 31st October / 21 November Compliance Load Low. Books of accounts are simple or compiled on a gross....
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.... presumptive percentage. High. Requires thorough validation by a Chartered Accountant under Section 44AB. Section 43B Window Shorter window to pay out outstanding statutory dues. Longer window to pay out outstanding statutory dues. Legal Status Permissible; taxpayers are not similarly situated due to audit. Permissible; extended time is directly tied to audit dependency. Ot....
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....her possible view: So far payments, financial burdens are concerned non audit cases and audit cases are similarly placed. Therefore, discrimination is not rational and intelligible, it is merely consequential due to different last dates prescribed for filing of ITR. One can say that it will affect in first year only, because the sum will be allowed in next year, on actual payment basis. H....
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....owever, in certain cases like new business, seasonal business, low turnover and realisation cases of business it can substantially affect the non audit cases for the following impact: More income tax payable due to not allowing extended period to pay sums covered u.s. 43B and TDS/TCS. Financial burden due to postponement of deduction by 12 months. Sums remaining outstanding and disallowed wi....
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....ll be allowed in next tax year. If stocks and receivables are higher than normal or expected can adversely effect advance tax obligations causing interest payable. Option to make estimated claim with adjustment in nest year, if required. To remove this discrimination, assesses who are required to file ITR by 31st August, can be allowed an option for deduction based on estimated basis for ....
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....such payments before 31st October. With necessary adjustments in next year, if such estimated sum is not paid/ or is not fully paid before 31st October, then to disallow corresponding sum remaining unpaid as on 31st October of immediately preceding year. =============<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....