Interest on tds
This query is : Resolved
27 June 2013
Dear All,
can any body tell me that, is Interest paid in nature of late payment of TDS is been allowable as deduction U/S 37 or any other section of PGBP Head?
As per me it will be disallowed as interest paid under income tax act is disallowable u/s 37 but the client is arguing that interest on tds can not be disallowed as nowhere act has mentioned the word TDS, But according to me income tax act includes TDS.
can any body tell me that, is Interest paid in nature of late payment of TDS is been allowable as deduction U/S 37 or any other section of PGBP Head?
As per me it will be disallowed as interest paid under income tax act is disallowable u/s 37 but the client is arguing that interest on tds can not be disallowed as nowhere act has mentioned the word TDS, But according to me income tax act includes TDS.
27 June 2013
Yes. Interest on late payment of TDS will be disallowed u/s.37. The word income tax include TDS- Income tax also
28 June 2013
But Sir some professionals are saying that the interest on tds is compensatory in nature not penal, and only penal nature interest is disallowed in section 37.
So m in big confusion now.
So m in big confusion now.
29 June 2013
Interest payable under the provisions of the Act is also covered - Payment of income-tax is not deductible as per section 40(a)(ii); hence, interest under sections 139, 215 and 217 which is to be regarded as accretion to tax, cannot also be allowed to be deducted - Assam Forest Products (P.) Ltd. v. CIT [1989] 180 ITR 478 (Gauhati).
Note : On the same principle, interest payable under sections 220(2), 234A, 234B or 234C is also not deductible.
Note : On the same principle, interest payable under sections 220(2), 234A, 234B or 234C is also not deductible.
Message likes :
1 times
30 June 2013
Thanx a lot,
now i am very clear about it.
now i am very clear about it.
30 June 2013
Thanx a lot,
now i am very clear about it.
now i am very clear about it.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Section 50-fixed asset-->building ceases to exist
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- TDS on TRUST
- Consolidated financials
- Withdrawal in cash from partners capital account by partner
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Tds on commission charges
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
