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Journal entery

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08 June 2015 Dear sir
What entry to be pass when i make a payment of interest on tds

14 June 2015 Interest on TDS A/c Dr...
To Bank A/c..

(Being interest paid for late deposit of TDS)

14 June 2015 Also note that Interest on TDS is levied under section 201(1A) of the Income tax Act,1961. The said expenditure will not be allowed as a business expenditure.

Citation: Madras high court decision
in CIT V Chennai Properties & Investments Ltd reported in 239 ITR 435






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