Retention bonus amount paid before due date of filing return of income allowable

Ocwen Financial Solutions (P) Ltd. vs. DCIT (ITAT Bangalore) A perusal of provision of section 43B of the Act would show that clause (c) relates to the sum referred to in 36(1)(ii) of the Act, which in turn relates to any sum paid to an employee as bonus or commission for services rendered. Admittedly in the instant case, provision for retention bonus is payable to an employee for services rendered by him during the year under consideration. Hence, the retention bonus is allowable as deduction u/s 36(1)(ii) of the Act only and not u/s 37(1) as contended by Ld A.R. Further the provisions of sec...