TDS late paid. Exps allowed or not

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seema singla (Querist)
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05 May 2010 The co. is paying expenses to a contractro after deducting TDS.
It deducted TDS on 28.2.2010 and 31.03.2010. But not depostited the same till now. I know the TDS deducted in the m/o march can be paid upto 31.5.2010 or before due date of return and the expense is tax deductible. My query is regarding Feb entry on which TDS has been deducted but paid in the month of may. I want to know whether the expenses of feb on which tds is deposited in the m/o may is tax deductible or not.
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Thanx

Shyam Lal Naik

Shyam Lal Naik (Expert)
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05 May 2010 The disallowance provision has been rationalised in this years budget. TDS, if deposited on or before due date of filing of return of income is allowed.

This amendmanet is applicable for the Assessment Year 2010-11 onwords.

Hence, TDS deducted in Feb'10 and deposited in May'10 is allowable.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 May 2010 IF PAID BEFORE DUE DATE OF RETURN EXPENSE IS ALLOWABLE. BUT PAY ALONG WITH INTEREST.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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05 May 2010 agreed with expert. If it is depoisted with interest before filing of ITR , then it is allowed in the same year, otherwise it is allowed in that financial year in which it is deposited.i.e it is allowed FY 2010-11 return.

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