LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Disallowence

SYAMA (ARTICLE ASSISTANT) (26 Points)

22 December 2015

tds of march paid on 28th april 2015 is a disallowence on ay 2015-16?

Reply
Follow
Share

5 Replies

MOXESH DOSHI (INTERNAL AUDITOR) (57 Points)
Replied 22 December 2015

No, There shall be no disallowance, Since the TDS has been deposited on or before due date of Filing Return under section 139(1) i.e., 28th April.

refer Section 40(a).

1 Like

CA Vanamala Phani Kumar (Proprietor of M/s Vanamala and Co) (972 Points)
Replied 22 December 2015

Due date for TDS for the month of march is 30.04.2015

ramesh (service) (114 Points)
Replied 22 December 2015

Agreed with both the anwer

Stranger (.) (5526 Points)
Replied 23 December 2015

As per section 40(a)(i) & 40(a)(ia), besides other conditions, one of the condition for disallowance is that tax "has been deducted in the subsequent year". It means that tax should have been deducted in the P.Y. itself (i.e., entries for TDS Payable should have been passed in the relevant P.Y itself) but may be paid in the subsequent year (with interest, if applicable) before due date of filing return of income us/-139(1) for avoiding disallowance of full expenditure u/s-40(a)(i) or upto 30% of such expenditure u/s-40(a)(ia).

Hence, ommission of 'TDS payable' entry in the P.Y. 2014-15 itself either by the assessee or by it's auditor may result into disallowance u/s-40(a)(i) or 40(a)(ia), if comes into the notice of A.O. either due to it's materiaity or otherwise.

Hope ur doubt is cleared now..