Allowablity of int. on income tax

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Arvind sharma (Querist)
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30 March 2017 As per sec. 40(a)(ii) amount paid as income tax is not an allowable exp. in P&L.
So is int. exp. on income tax or int. exp. on income tax demand is allowable or not ??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 March 2017 To disallow for income tax purpose. Pl read in https://www.caclubindia.com/experts/interest-on-income-tax-is-allowable-or-not--1125154.asp

Courtesy :- Ms Pooja Agarwal.

Arvind sharma

Arvind sharma (Querist)
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30 March 2017 Okay sir i got about income tax, but what about int. on TDS or late fee for TDS filling or amount paid as TDS demand ??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 March 2017 Interest on no deduction / belated payment of TDS is NOT a business expenditure.

Citation:- CIT Vs. Chennai Properties & Investments Ltd (1999) 239 ITR 435 (Mad).