Section – 43B, Income-tax Act

As per Section 43B of Income Tax Act 1961, certain payments can claim as expenses in year in which it is made for e.g. payment of statutory dues like ESIC, PF, GST, TDS, TCS, MLWF etc.

Auditor has to check whether payment is made within the due date or not and if not then auditor has to report it in Tax Audit report. If the payment is made after monthly due date of that respective liability or short payment is made, then assessee must pay late payment interest on entire amount.

Auditor must report said interest and disallowance if any in his report

Here LedgerVision will help you out by furnishing Statutory Dues report. In this user will get statutory liability and month wise report about payment status of the liability i.e. liability is paid within the monthly due date or not. It will bifurcate its payment entries within two columns “Payment Details Before Due Date” and “Payment Details after due Date”. Also, it will calculate interest portion on the outstanding amount on monthly basis. At the end user will receive comment on each month like payment is made within due date, payment is not made etc.

Following are the configuration requirement for this report in LedgerVision Software:

  1. In category configuration screen, GST, TDS, PF ESIC etc. should be configured on group level basis, means group containing these ledgers should be configured.
  2. Then in Loans and Liability page, there is sub tab given named as current liabilities, in this tab LedgerVision automatically maps required statutory dues. User can check auto configuration done by software and correct it if required from drop down list provided

It is suggested that user should compare Section 43B report provided by LedgerVision with actual monthly challans and returns filed.