Dis allowance in TDS Recent Amendement (Income Tax)

This query is : Resolved

Ajay Shah

( Author )
02 October 2008

AS per Recent Amendement in sec40 for Dis allowance : Wheather Tax deductible in the month of April to Feb , but it was deducted in march and TDS is remmitted before due date u/s139 - w+heather it is allowable or Not.?

CA Nitin Wadhwani

( Expert )
02 October 2008

Amendment is Sec.40(a)(ia) is applicable for deduction of tds in month of march, but not paid.
It will be allowed if paid within due date of filing of return.
for apr-feb, due date is 31st march.

Venkat Rao Marella

( Expert )
02 October 2008

the amendment affects only the year end provisions.
The position remains the same for deductions made during jan & feb months. the deductions made during these months have to be remmitted on or before 7th of next month.
How ever, the ammendment is applicable only for the deductions made from the expenses provided for year end.
Any deductions made on 31st march'2008 and deposited on or before the due date of filing return of income is allowed as deduction.
Howe ever, if deduction is made and the same is not remmitted before 31st may, the same cannot be allowed as deduction.

CA Nitin Wadhwani

( Expert )
02 October 2008

No.
After The Amendment, even if the payment is not remmitted till 31st May, but remmitted before due date of filing of return,
It is ALLOWED.

Ajay Shah

( Author )
02 October 2008

Sir, I am asking for If TAx is Deductible on payment and Credit w+hich ever is earlier , But I hav not Made any deduction From April to Feb and I have deducted TDS on 31st March, Wheather I will remmit it before due date u/s 139

PIYUSH JAIN

( Expert )
03 October 2008

it will attract Interest on TDS as due date for TDS payment is 7th of next month.

CA Nitin Wadhwani

( Expert )
10 June 2009

Yes.
It will be allowed.