TDS not deducted - consequences

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Anil (Querist)
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23 April 2008 Please let me know which Section of Income Tax Act says - expenditure is not allowed in the year of payment in case TDS not deducted during that year?

Are there any exception to the rule?

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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23 April 2008 TDS if disallowed u/s 40(a) is allowed in the year of payment. No exceptions

Anil

Anil (Querist)
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23 April 2008 Some memeber in this forum had mentioned few days back that TDS on Salary is an exception. Can you please confirm this?

Will the expenditure allowed in a year if the TDS is SHORT deducted during that year?

Jitender

Jitender (Expert)
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23 April 2008 because sec 40(a) does not cover sec 192 i.e salary.
but if tds is not deducted on salary, penalty provisions are still applicable.

Anil

Anil (Querist)
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23 April 2008 If TDS is SHORT deducted on an expenditure in a financial year, will the expenditure be allowed as deduction in that financial year?

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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23 April 2008 only up to the deduction of tax is allowed expences in that year

Anil

Anil (Querist)
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23 April 2008 Dear Hemant Sir,

Your answer is not clear to me. I request you to kindly explain it.(If possible, with an example)

Thanks.

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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05 May 2008 example :
total exp.: 10,000
tds rate : 2%
deducted :100 (in place of 200)
expenditure allowable : only 5,000

Jitender

Jitender (Expert)
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25 August 2008 proportionate disallowance will be made if tds is shortly deducted.

Jitender

Jitender (Expert)
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25 August 2008 proportionate disallowance will be made if tds is shortly deducted.

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TDS not deducted - consequences

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