3cd report

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student (Querist)
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21 May 2011 whether int on tds is required to be reported in 3cd...
whether it is compensatory or penal in nature

If it is b/c of late payment of tds[compensatory]
If it is b/c of non payment of tds[penal]].......

whether the above pts r correct or whether any int paid under DT laws r disallowable whether they r compensatory or penal.

pls clarify the situation

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 May 2011 Interest on TDS need not be reported in form 3CD. Such interest is compensatory in nature.

Direct tax is disallowable hence interest on such tax is also disallowable for the purpose of computation of taxable income.
Citation :- CIT Vs. Chennai Properties & Investments ltd (1999) 239 ITR 435(Mad).

student

student (Querist)
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22 May 2011 but sir int on refund is treated as IOS.....
we get refund b/c we've paid more direct tax then why it should be treated as an income ..
this income is earned b/c we have to pay tht tax..

one more query sir tat wht wil be the treatment of int on IDT [vat,excise etc]

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