Section 43B. Certain deductions to be only on actual payment

2[ 43B. Certain deductions to be only on actual payment.— Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of— 3 [(a) any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, or] (b) any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees,[4] [or] 4[(c) any sum referred to in clause (ii) of sub-section (1) of section 36,] 5[or] 5[(d) any sum payable by the assessee as interest on any loan or borrowing from any public financial institution[6] [or a State financial corporation or a State industrial investment corporation], in accordance with the terms and conditions of the agreement[7] [governing such loan or borrowing; or] 8 9 [(e) any sum payable by the assessee as interest on any [loan or advances] from a scheduled bank[10] [or a co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank] in accordance with the terms and conditions of the agreement governing[11] [such loan or advances],[12] [or] 12[(f) any sum payable by the assessee as an employer in lieu of any leave at the credit of his 13[employee, or]] 14[(g) any sum payable by the assessee to the Indian Railways for the use of railway assets,] 1[Provided that nothing contained in this section shall apply in relation to any sum 2* which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub-section (1) of section 139 in respect of the previous year in whichthe liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return. ==> picture [472 x 24] intentionally omitted <== Explanation[4] [1].—For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (a) or clause (b) of this section is allowed in computing the income referred to in section 28 of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 1983, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him:] 5 [ Explanation 2.—For the purposes of clause (a), as in force at all material times, "any sum payable" means a sum for which the assessee incurred liability in the previous year even though such sum might not have been payable within that year under the relevant law.] 6[ Explanation 7[3].—For the removal of doubts it is hereby declared that where a deduction in respect of any sum referred to in clause (c)[8] [or clause (d)] of this section is allowed in computing the income referred to in section 28 of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.] 9[ Explanation 3A.—For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (e) of this section is allowed in computing the income referred to in section 28 of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 1996, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.] 10[ Explanation 3B.—For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (f) of this section is allowed in computing the income, referred to in section 28, of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 2001, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.] 1. Ins. by Act 11 of 1987, s. 10 (w.e.f. 1-4-1988). 2. The words "referred to in clause (a) or clauses (c) or clause (d) or clause (f)" omitted by Act 32 of 2003, s. 21 (w.e.f. 1-4-2004). 3. The second proviso omitted by s. 21, ibid . (w.e.f. 1-4-2004).