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Section 43B disallowance applies if which is not paid by return due date?
ACost of goods sold
BAll expenses incurred
CSales returns
DTax, duty, cess to government
Answer & Solution
Correct answer: D. Tax, duty, cess to government
1. Section 43B lists items deductible on actual payment: tax/duty/cess, employee PF/superannuation/gratuity, interest on bank loans, leave encashment.
2. If paid by return due date under Section 139(1), deduction allowed in relevant PY.
3. Otherwise, deduction allowed in year of actual payment.
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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