Disallowance as per TDS rules
This query is : Open
CA Sahil Singla..
(Querist)
15 April 2011
Sir
Plz tell me the disallowance rules under TDS.
My client took a loan from a Financila Institution in April 2010. IT continoulsy paid monthly interest for that till march 2011. But it dedcuted TDS on whole of the Interest at the year end 31.03.2011 & remit the same on 10.04.2011.
Please tell me is there any disallownace of expenses ?
According to me,as per 40a, TDS on Intt. upto Feb 2011 should be remiited by 31.03.2011 & of March by due date of Return of income Tax.
Otherwise Exp. is disallowed permanently.
plz tell me if i m correct ?
or there is any ammendment to this ?
Plz tell me the disallowance rules under TDS.
My client took a loan from a Financila Institution in April 2010. IT continoulsy paid monthly interest for that till march 2011. But it dedcuted TDS on whole of the Interest at the year end 31.03.2011 & remit the same on 10.04.2011.
Please tell me is there any disallownace of expenses ?
According to me,as per 40a, TDS on Intt. upto Feb 2011 should be remiited by 31.03.2011 & of March by due date of Return of income Tax.
Otherwise Exp. is disallowed permanently.
plz tell me if i m correct ?
or there is any ammendment to this ?
16 April 2011
Section 40(a)(ia) has been amended and now the time limit of paying TDS for the whole of year has been extended up to due date of filing of return. Therefore there will be no disallowance of interest in case mentioned above.
Yes late deduction of TDS in your case may attract penalty.
Yes late deduction of TDS in your case may attract penalty.
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Ranjan Dayal
(Expert)
16 April 2011
Dear Sahil
first i don't understand under which sec a TDS is deducted since as per provision of sec194A is not applicable in case where interst is paid or credited to any banking company keeping in view the above provision company is not liable to deduct TDS on interest paid against loan
first i don't understand under which sec a TDS is deducted since as per provision of sec194A is not applicable in case where interst is paid or credited to any banking company keeping in view the above provision company is not liable to deduct TDS on interest paid against loan
16 April 2011
Banking companies are not liable for tds. There are many NBFC's which are giving loans and TDS is applicable on them.
Please understand the difference between banking companies and other NBFC's.
Please understand the difference between banking companies and other NBFC's.
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CA Sahil Singla..
(Querist)
16 April 2011
Agreed with Mr. krishna Kumar Saruka
All financial inst r nor banking co.'s
All financial inst r nor banking co.'s
Ranjan Dayal
(Expert)
16 April 2011
I agreed with Mr. Krishna but i just want to know to whome actually the interest is paid and whether we came out the scope of sec 194A or not, since except NBFC , all banking Institution and any financial corporation established by or under a Central, State or Provincial Act are exempt under sec 194A
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