Sums covered by S.43B, except payable to MSME are allowable if actually paid before due date to file ITR.

By Dev Kumar Kothari  FCA, ACS

Synopsis – sums covered by S.43B, except payable to MSME are allowable if actually paid before due date to file ITR. So, these can be claimed in ITR for payments up to 31.10.2026 (ITR due date). In TAR it can be mentioned – not ascertainable as on signing date of report.

A brief note is appended below:
Simplified version of provisions to the extent required for this write-up.

Readers on this website and particularly those interested and affected by this dilemma are well aware of relevant provisions, Therefore, a simplified version of provisions, to the extent considered necessary by learned author  are given below:

[Certain deductions to be only on actual payment.
43B. Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of-

Following (in short)
a.     tax, duty, cess or fee,
b.     employers contribution to PF, SAF, GF,ESI, other welfare funds for eployees
c.     bonus to employees (S.36.1.ii)
d.     Interest to  PFI, SFI, SFC  etc.
e.     da.    Interest to Notified NBFC
f.       Interest payable to banks ( scheduled, co-operative ..)
g.     Leave encashment
h.     Sum payable to Indian Railways for use of railways assets.
i.       Sum payable to MSE beyond due date as per MSME regulations
Shall be allowed in year of actual payment.

Provided that any sum out of above except (h- MSME) remaining outstanding as on close of previous year (31st March) shall be allowed if actually paid before due date to file return of income, applicable in case of assessee.

TAR -due date -from S.44AB – date one month prior to  the due date for furnishing the return of income under sub-section (1) of section 139.

Due date for furnishing the return from Section 139
Company – required audit with S.92E applicable       30th November
Company – required audit without S.92E applicable  31st October
 
However, Tax Audit Report is to be filed before 30.09.26. Therefore, TAR  can  include payment up to signing of TAR, BUT THAT WILL BE WRONG.

Therefore,  Auditor can mention – not ascertainable on signing date.
If any sum out of above , as per proviso is actually paid before filing of ITR, it can be claimed in ITR.
It is also advisable to file  revised details as addendum to TAR.

Particular clause of TAR
26. In respect of any sum referred to in  section 43B, the liability for which:-
Xxx
(B) was incurred in the previous year 48[and (for clauses other than clause (h) of section 43B) was,]
(a) paid on or before the due date for furnishing the return of income of the previous year under section 139(1); not ascertainable as on signing date of report.
(b) not paid on or before the aforesaid date. – not ascertainable as on signing date of report.

Note: in cases where ITR due date is 30.11.2026 TAR can be uploaded by 31.10.26.

I hope this short article will be useful for members of institute.