tds case urgent

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2010 pls help on the following issue:-

In one Pvt Co. salary paid to one official is Rs. 560,000/- in FY 08-09.No TDS has been deducted as of now.
Company applied for TAN in JAN 2010 & got the same.
Now can they deduct tax now for salary incurred in FY 08-09 and claim the expenditure in FY 09-10 for tax purpose?

Rahul Gupta

Rahul Gupta (Expert)
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12 February 2010 My view is it is not possible.Tax will be deducted only for the current year.

Experts views solicited.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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13 February 2010 My view also same, you cannot deduct the TDS on previous year in current year

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2010 But there is one provision which i have came across is that when tds is not deducted then exps is disallowed & allowed only when you make deduction...(correct me if i am wrong)
so can it claim such exps in this year after paying tax on such 560,000 by their own pocket?

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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15 February 2010 the provisions you are talking about are section 40(a)(ia) but this is not applicable in case of salary expenditure, so if no tds is deducted on salary than no disallowance of salary