Section 43B under the
Income-tax Act, 2025
Certain deductions allowable only on actual payment
Topic
Certain deductions allowable only on actual payment — Business provisions under the Income-tax Act, 2025 (Act 30 of 2025).
What carried over
The substance of this provision was not changed by the re-write. What moved is the citation.
Confusing collision to watch for: old s.37 (general deduction) becomes new s.34, while old s.43B becomes new s.37. The covered sums are listed at s.37(2)(a)-(g): taxes/duties/cess/fees, employer PF/superannuation/gratuity contributions, leave encashment, s.32(a) sums, interest to specified financial entities, Indian Railways dues, and MSME dues. The 'paid on or before the return due date' relief is s.37(3); interest-converted-to-loan rule s.37(4); no double deduction s.37(5); employee contributions excluded s.37(6); 'specified financial entities' defined s.37(7).
Source
ICAI concordance row '37 | Certain deductions allowed on actual payment basis only. | 43B'; verified against bare text of s.37(1)-(7).
CBDT publishes its own correspondence utility on incometaxindia.gov.in and that is the authority. Spot-check anything high-stakes there before you rely on it.
Frequently asked
Why do 37 and 43B look like they swapped?
Because effectively they did. Old Section 37 (general deduction) becomes new Section 34, while old Section 43B (actual-payment deductions) becomes new Section 37. This is the single easiest citation to get wrong in the transition — say which Act you mean.
This is a navigational aid for the 1961 → 2025 transition, not tax advice. It helps you find the right place in the new Act when you already know the old section. Confirm every citation against the bare Act and against CBDT's own correspondence utility before relying on it in a return, certificate, notice reply or opinion. The source text used here is the Act as passed, so any rate or threshold amended by the Finance Act, 2026 is not reflected; section numbers are unaffected.