In respect of certain following expenditure/ payments, the deduction is allowed only if the amount has been actually paid during the previous year.
1. Any sum payable by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force.
2. 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.
3. Any sum payable to an employee as bonus or commission for services rendered.
4. Any sum payable by the assessee as interest on any loan or borrowing from any public financial institution or State Financial Corporation or State Industrial Investment Corporation like IDBI, IFCI, UPSIDC, Delhi Financial Corporation, etc. in accordance with the terms and conditions of the agreement governing such loan or borrowing.
5. Any sum payable by the assessee as interest on any loan or advance from a scheduled bank or a co-operative bank (other than a primary agricultural credit society or primary cooperative agricultural and rural development bank) in accordance with the terms and conditions of the agreement governing such loan.
6. Any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee.
7. Any sum payable by the assessee to the Indian Railways for the use of railway assets.
8. Any sum payable by the assessee as interest on any loan or borrowing from a deposit-taking NBFCs and systemically important non deposit-taking NBFCs in accordance with the terms and conditions of the agreement governing such loan or borrowing
Stipulated Time Period for Actual Payment :
Due amount should be paid on or before the due date of furnishing the return of income u/s 139(1) in respect of the previous year in which the liability to pay such sum was incurred.
However, in cases (1) to (8), if the payment of outstanding liability is made after the due date, deduction can be claimed in the year of payment. |
