TDS on Interest on loan from NBFC relating to prior period
This query is : Resolved
Quick Summary
Jaya Kumari
(Querist)
22 June 2023
Hello Experts,
Following is the case scenario:
Interest on Loan from NBFC was mistakenly not entered in Profit and Loss account for the FY 20-21, Also TDS was not deducted.
Now, if in the current year, if we decide to deduct TDS, can we claim the expenditure in profit and loss account?
I know that as per section 40, if TDS is deducted subsequently, the expense is allowed in that subsequent year. But in my case we didn't disallow the expenditure through Tax Audit report, but mistakenly didnt even debited it in PL in the first place. Can we still the claim the deduction?
Following is the case scenario:
Interest on Loan from NBFC was mistakenly not entered in Profit and Loss account for the FY 20-21, Also TDS was not deducted.
Now, if in the current year, if we decide to deduct TDS, can we claim the expenditure in profit and loss account?
I know that as per section 40, if TDS is deducted subsequently, the expense is allowed in that subsequent year. But in my case we didn't disallow the expenditure through Tax Audit report, but mistakenly didnt even debited it in PL in the first place. Can we still the claim the deduction?
Dhirajlal Rambhia
(Expert)
22 June 2023
No, you cannot claim in preceding year as it was not declared as due.
Jaya Kumari
(Querist)
22 June 2023
Okay thankyou sir for resolving the query
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Dhirajlal Rambhia
(Expert)
22 June 2023
Most welcome.
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