40 (a)disallowance

This query is : Resolved

Sunil (Querist)
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20 September 2008 one of my clients had paid freights monthly for the year 31.03.2008 but has not deducted tds on the applicable amount. he has as on 31st march 2008 provided for the tds payable entry on the freight payments and paid the amount is sept 2008. in which financial year this expenditure is allowed

Sunil

Sunil (Querist)
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20 September 2008 very urgent

CA Pawan Goswami

CA Pawan Goswami (Expert)
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20 September 2008 Only expenses of March 2008 will be allowed in A.Y. 2008-09 . Remaining will be allowed in A.Y.2009-10.

CA.PRAMOD KUMAR PANDA

CA.PRAMOD KUMAR PANDA (Expert)
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20 September 2008 This expenditure shall be allowed during the assessment year 2008-09, if TDS amount is paid before the date of filing the Return. This provision came in to effect after retrospective amendment by finance act-2008 in Section 40(a)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 September 2008 I think Mr.Pramod's view is correct.

CA Anil Jain

CA Anil Jain (Expert)
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21 September 2008 As the newfinance act 2008 introduced, TDS deducted in the manoth of march can be deposited till the time furnishing return under secrion 139(1). i.e till 30th september.
TDS deducted before maerch should have been deposited within due time i.e. 31st march or 31st may as applicable.
SO TDS deducted in March will be allowed in the A.Y.2008-2009 itself, and other will be in the A.Y. in which it has been deposited. i.e. in A.Y. 2009-2010.

Rgds/-
Anil Jain