Interest on Advance tax

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JIGAR DALAL (Querist)

09 April 2011 Hi All Experts,

Just wants to confirm Of any Firm has paid interest on delayed payment of advacnce tax is deductable as expense or not?
Kindly provide Income Tax notification or section for that

its urgent

Thanks in advance

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

09 April 2011 Any amount payable towards Tax, Interest, Cess and Penalty pertaining to Income Tax is not deductible.

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JIGAR DALAL

JIGAR DALAL (Querist)

10 April 2011 In Financial Statement where we can show the figure of interest on late payment of Advance tax

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

10 April 2011 In Financial and Other charges.

JIGAR DALAL

JIGAR DALAL (Querist)

10 April 2011 is there notification of Income tax fot that?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)

10 April 2011 Income Tax Act itself is clear. Notification is required when the sections are not clear.

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The basic concept is -

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The expenditure which is incurred to run the business; is allowed while computing the Income.

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To pay advance tax late and then to pay interest thereon is not relating to running the business.

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Hope it will make you clear.

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