40(a)(ia) of Income Tax Act

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This query is : Resolved

CA. O.P. Agarwalla (Querist)

20 November 2007 In some book, author has given an opinion that disallowances u/s. 40(a)(ia)is applicable only on the amount (expnses) payable at the end of the year.
I would like to invite comments of seniors on this interpratation of the Jodhpur based author.

Amarjeet Singh

Amarjeet Singh (Expert)

20 November 2007 if TDS is late deducted or late deposited but deducted or deposited with in PY then expenses relating to this TDS is allowed during the py year.But if TDS is deposited after 31st march of relevant PY then it shall be allowed in the next PY except in the case of TDS deducted on 31st March of relevant PY for this time period to deposit u/s 220(1) is upto 31st may therefore TDS deducted on 31st March is deposited upto may then this is allowed within same year therefore author opined that it is applicable on amount payable at the end of the year as this is only amount which u will deposit after Current PY & shall be allowed in the next PY

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Querist)

20 November 2007 What will be the case if no TDS has been deducted at all and amount has been paid during the year(No amount payable as on 31st March)?

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