Interest on TDS

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This query is : Resolved

ashwini (Querist)

29 July 2010 Dear Sir/Mam,

Can u please tell me the allawance or disallowance of expense in the following case.

If there is delay in deduction of TDS which resulted in delayed payment also which attracts interest on TDS.

If the assessee has paid TDS amt. but has not charged & paid interest on the same, then the expenses on which TDS has deducted is allowed as deduction in the P. Y. or not?

Thanks

Best Regards
Ashwini

Aditya Maheshwari

Aditya Maheshwari (Expert)

29 July 2010 If TDS has been deducted and deposited then expenses cannot be disallowed.

CA Sanat Pyne

CA Sanat Pyne (Expert)

29 July 2010 interest on tds ill not be allowed. but expences on which tds has been paid will be allowable exp. It does not matter wheather you have charged interest on tds regarding allowability of exp.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

29 July 2010 Expenses will be allowed.

But a demand for the penal interest can be raised anytime by the IT deptt after finding the same in the etds return.

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