Tax Deducted at source

This query is : Resolved

Guest

Guest (Querist)

13 May 2009
Dear Sir

I would like to what will be the consequence in case of short deduction of Tax.
For e.g. On Expenditure of Rs.100 TDS should have been deducted @10% and accordingly TDS amount will come to Rs.10 but in our case we have deducted TDS of only Rs.5
I would like to know whether the whole amount will be disallowed or only part of the amount on which TDS is not deducted.

If we consider the above example the amount on which TDS is not deducted is Rs.50. What will be the disallowance amount Rs.100 or Rs.50

Kindly solve this issue.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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13 May 2009 Yes, to the extent Rs 50 the exp wil be disallowed

jegannath G

jegannath G (Expert)
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13 May 2009 Yes only to the extent of the TDS amount deducted will get allowed

taxindiaconnect

taxindiaconnect (Expert)
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13 May 2009 The section 49 (ai)prescibes that the the amounts on which tax is dedutible and such tax has not bee deducted, the sum will be disallowed. The use of word such tax means that entire tax deductible should have been deducted. In case of part deduction, following this interepretation the entire amount will be disallwed as such tax as deductible has not been deducted.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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13 May 2009 I also have the same opinion as Mr. Rajesh Dua said. Thw whole of the expenditure should be disallowed.

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