Amendment of section 43B.
23. In section 43B of the Income-tax Act, with effect from the 1st day of April, 2017,-
(i) in clause (f), for the word “employee” occurring at the end, the words “employee, or” shall be substituted;
(ii) after clause (f), the following clause shall be inserted, namely:-
“(g) any sum payable by the assessee to the Indian Railways for the use of railway assets,”.
Notes on Clauses:
Clause 23 of the Bill seeks to amend section 43B of the Incometax Act relating to certain deductions to be only on actual payment.
The aforesaid section, inter alia, provides that certain sum payable by the assessee shall be allowed as deduction irrespective of the previous year in which the liability to pay such sum was incurred if the same is actually paid on or before the due date of furnishing of the return of income.
It is proposed to insert a new clause in the said section so as to provide that any sum payable by the assessee to the Indian Railways for use of railway assets shall be allowed as deduction only, if it is actually paid on or before the due date of furnishing the return of income of the relevant previous year.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years.
