Expenses add back in profit

This query is : Resolved

Rajkumar Gutti (Querist)
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08 March 2026 We are purchasing grocery for distributing poor people. The purchase is about 75 lacs. This grocery we debited to charity & donation account. The same expenses, we add back in profit. On this expenses we did not deduct tds u/s 194 Q.
Question-----
1) Even we add back 100% expense due to not business expenses, though still required again 30% expenses add back in profit.
2) If not deduction of tds any interest,/ penalty or any prosecution. What percentage int & penalty.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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08 March 2026 You do not need to add back an additional 30% if the full 100% has been disallowed as a non-business expense. However, you remain liable for the TDS amount under Section 194Q, plus interest at 1% per month for the delay.

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