Ihave made a provision for Tax of Rs 15,000 but next year made a payment of Rs 18,000. I was told Rs, Income Tax

[Sanjana]

Ihave made a provision for Tax of Rs 15,000 but next year made a payment of Rs 18,000. I was told Rs 3,000 is to be disallowed this year. But am unable to know under which section?

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[DKKOTHARI]

For better and correct response, give yr. Q. correctly and compeletely. If it is provision for income-tax or wealth-tax, entire amount is to be disallowed. If it is any other allowable tax, duty, fees etc. then full payment may be allowed if actually paid within prescribed time- due date to file return, provided the payment is agaisnt earlier years liabilty, and there is case of short provision. Disallow provision outstandign as on 31st march Rs. 15000 and claim actual payment for the relevant previous year, made before due date Rs.18000/- . Check whether Rs.18000 is relating to earlier year and any part is not for the year in which payment is made. In that case current liability padi will be allowed in computation of current income.