Interest on delay payment

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Vatsal

Vatsal (Querist)
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25 April 2016 Whether Interest ,penalty on delay payment on TDs,income tax allowable as an expense???

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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25 April 2016 Interest on TDS is levied under section 201(1A) of the Income tax Act,1961. The said expenditure will not be allowed as a business expenditure.

Citation: Madras high court decision in CIT V Chennai Properties & Investments Ltd reported in 239 ITR 435

Vatsal

Vatsal (Querist)
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25 April 2016 What about the penalty on the same

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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25 April 2016 Penalty will also be disallowed.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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25 April 2016 Interest, penalty, late fees disallowed u/s 37.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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26 April 2016 Yes it will be disallowed and you don't have to take as expense. you have to add in your income as disallowed expense and then calculate your tax liability.

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