Income tax-

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This discussion clarifies whether a limited company can deduct Employee State Insurance (ESI) and Tax Deducted at Source (TDS) payments directly from its income tax liability. The answer is no; these deductions are typically claimed by the individuals or entities from whom the tax was withheld when they file their own tax returns.

Mohamed Fazil

Mohamed Fazil (Querist)
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25 April 2021 Dear Sir,

For example,
I am a ltd company. i have deducted ESI from employees side rs. 2,250 and employer side of rs.9750 and i have deducted TDS from suppliers and employees totalling of rs. 50.000.

Please note that, When i file income tax return at end, can i take anything from the above mentioned as deduction from the income tax payable?

Please can you explain me briefly.

CA Raj Doshi

CA Raj Doshi (Expert)
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26 April 2021 No. The Ltd company cannot. The person who received the amount shortly due to TDS deduction, that person will get deduction of the amount from income tax payable.

Mohamed Fazil

Mohamed Fazil (Querist)
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26 April 2021 Thank you so much sir

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