Clause 26-Section 43(B)

Clause 26-Section 43(B)
The system Captures the details in the following steps:

What is this ?
Section 43(B) of the income tax act provides a list of expenses allowed as deduction under the head ‘Income from business and profession’. It states some expenses that can be claimed as deduction from the business income only in the year of actual payment and not in the year when the liability to pay such expenses is incurred.
The following deductions are specified in this section
1. 43(B) (a) - Any tax, duty, cess, or fee paid under any law in force is allowed as a deduction when it is paid - this includes GST, customs duty, or any other taxes or cesses paid. Interest paid on these taxes is also eligible for deduction
2. 43(B) (b) - Contribution to any recognized employee’s benefit fund: contribution by the employer to any employee’s benefit fund namely PF fund, superannuation fund, gratuity fund before the due date for depositing those funds or before the due date of filing income tax returns
3. 43(B) (c) - Bonus or commission payable to employees - this amount should be the actual bonus/commission paid to employees and not dividends payable to them as shareholders.
4. 43(B)(d) - Interest on borrowings from Public Financial Institutions or State Financial Corporation in accordance with the conditions governing such loan.
5. 43(B)(e) - Interest on loans and advances from Scheduled Bank in accordance with the conditions governing such loan.
6. 43(B)(f) - Leave encashment provided by an employer to his employees.
7. 43(B)(g) - Payment to Indian Railways.

Step -1 - Ledger Selection 

1. The user can choose ledgers on this page as required , the default display will have no ledgers in the first year ( the next year will have the ledgers added in step -1 in the PY if the ledger is still listed in the JSON)
2. The user to choose the classification and the other columns will be populated by the system 
 

Step -2 : Bifurcation Opening Balance 

1. Step - 2 allows the user to bifurcate all the ledgers added in step-1  that have opening balances. Only those with opening balances will be listed and user can bifurcate them as paid before and after 31st October  
2. There are validations in place that does not allow the user to enter amounts > than the opening balance 
3. User cannot add/ delete ledgers in this screen
 

Step -3 : Bifurcate Payments of FY 

1. Step -3 allows user to bifurcate all ledgers added in step -1 with credit transactions into payments made before and after 31st October of the current year. 
2. User cannot add/ delete ledgers in this screen and there are validations in place that does not allow user to enter amounts > total credits in the year. 
3. If any ledger added in step -1 does not have any accredit transactions during the year, they will not be listed here . 

Step -4 : View / Download Report 

1. Step -4 lists 4 different reports one for each sub-division as required under form 3CD.
2. If there are no listed ledgers under any division then the report is blank .