EXCESS PROVISION OF BONUS IN ACCOUNTS

[ani...@email.com]

 Provision for Bonus made in the Audited accounts Rs.30 Lacs

 

However Bonus actually paid is Rs.12 Lacs and claimed in the I.T Retun.

 

How will be the balance Rs18 Lacs (30L-12L) be accounted for in the accounts in the next financial year &

what will be the tax implication.

C.A ANIL AGARWAL

 

 

 

[DEBA PRATIM GHATAK]

Balance has to be credited to PL A/c and taxes paid on it u/s 41 for cessation of liability  --- On Fri, 1/10/10, ani...@email.com <ani...@email.com> wrote:

-- forum4ca is a Google Group of eServe online for the benefit of CA and other professionals. It is especially meant for written discussion & circulate information within group members. The mail may contain such research/advice/opinion/information/fact provided by any member and are subject to the accuracy and of the description of facts.The forum4ca, do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant facts. Further this Group’s Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Group.   To join and/or to post to this group send email: foru...@googlegroups.com To unsubscribe from this group, send email to:forum4ca+u...@googlegroups.com For more options, visit this group at:http://groups.google.co.in/group/forum4ca or www.eserveonline.net

[annud...@yahoo.co.in]

Sir,

Bonus is an allowable expenditure on payment basis under section 43B.

As such,unpaid bonus,cant be taxed,as cessation of liability,though MAT WILL BE APPLICABLE.
Ca shubpradheep agarwala

09830160265

[Anil Jain]

cessation of liability is taxable

CA.Anil Jain
Anil Hitesh & Associates
Barak Market 1st Floor
N.S Avenue,Silchar
Pin-788005
Mob: 09435071316
        03842-221678



 

---

Date: Mon, 4 Oct 2010 14:50:31 +0530
From: debu...@yahoo.co.in
Subject: Re: [PDRUNGTA] EXCESS PROVISION OF BONUS IN ACCOUNTS

[Kalidas Ramaswami]

If unpaid bonus has been subject to disallowance u/s43B,if there is a sbsequent reversal of the liability it cannot suffer tax u/s 41(1).
regards
kalidas
 

---

From: anilj...@hotmail.com
To: foru...@googlegroups.com
Subject: RE: [PDRUNGTA] EXCESS PROVISION OF BONUS IN ACCOUNTS
Date: Tue, 5 Oct 2010 22:54:56 +0530

[lalit kumar agarwal]

Though the provision has been made for Rs. 30 lakhs, the deduction claimed under the IT Act, 1961 amounts to Rs. 12 lakhs. No deduction has been claimed for Rs. 18 lakhs.
Now, in the accounts, the Rs. 18 lakhs can be written back without any liability for tax since as per section 41(1), the cessation of liability is taxable only when the same had been claimed earlier as deduction.

Lalit Kumar Agrawalla, FCA
Mob. No. 9332014316

On Mon, 04 Oct 2010 14:55:37 +0530 wrote

>Balance has to be credited to PL A/c and taxes paid on it u/s 41 for cessation of liability
>

>--- On Fri, 1/10/10, ani...@email.com wrote:

>

>From: ani...@email.com
>Subject: [PDRUNGTA] EXCESS PROVISION OF BONUS IN ACCOUNTS
>To: foru...@googlegroups.com
>Date: Friday, 1 October, 2010, 6:57 PM
>
>

Provision for Bonus made in the Audited accounts Rs.30 Lacs

However Bonus actually paid is Rs.12 Lacs and claimed in the I.T Retun.

How will be the balance Rs18 Lacs (30L-12L) be accounted for in the accounts in the next financial year &
what will be the tax implication.
>
>
C.A ANIL AGARWAL



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>
>To join and/or to post to this group send email: foru...@googlegroups.com
>To unsubscribe from this group, send email to:forum4ca+u...@googlegroups.com
>For more options, visit this group at:http://groups.google.co.in/group/forum4ca or www.eserveonline.net
>




--
>
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>

>
To join and/or to post to this group send email: foru...@googlegroups.com
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