TDS on lease rent not paid
This query is : Resolved
21 September 2010
A pvt. ltd co. pays lease rent on which TDS is deducted. But due to some problems, it is not able to deposit the TDS before filing of return. I want to know if the amount of lease rent will be disallowed??
Is the amount be added back to profit before calculation income tax??
Is the amount be added back to profit before calculation income tax??
21 September 2010
Yes the amount will be disallowed and will be added back to profit before calculation of income.
21 September 2010
DISALLOWANCE U/S 40(a)(ia)
what was the position earlier
as per section 40(a)(ia) all the expenses u/s 30-38 will be disallowed if
1. tds has not been deducted
2. tds has been deducted but has not been paid during previous year or in subsequent year in time as prescribed in section 200.
on
* Interest,
* commission,
* brokerage,
* rent,
* royalty,
* fees for technical/professional services payable to a resident ,
* amounts payable (for carrying out any work contract)
to a resident contractor/sub-contractor
provided that
1. if tax has been deducted and paid in subsequent year or
2. deducted in previous year but paid in subsequent year after expiry of the time limit u/s 200
then expenditure will be allowed in the year of payment of tds.
what is position now after changes in budget
Tax is deductible but not deducted
* No deduction in the current previous year
* If tax is deducted in any subsequent year, the expenditure will be deducted in the year in which TDS will be deposited by the assessee with the Government.
Tax is deductible (and is so deducted) during the last month (i.e., in the month of March) of the previous year but it is not deposited on or before the due date of submission of return of income under section 139(1)
* No deduction in the current previous year
* If tax is deposited with the Government after the due date of submission of return of income, the expenditure will be deductible in that year in which tax will be deposited.
Tax is deductible (and is so deducted) during any month but other than the last month (i.e., any time before March 1) of the previous year but it is not deposited on or before March 31 of the previous year
* No deduction in the current previous year
* If tax is deposited with the Government after the end of the current previous year, the expenditure will be deductible in that year in which tax is deposited.
though some relief has been given that in case we pay tds on or before due date of filing of the income tax return expenditure will be allowed in the same previous year but in case of non deduction of the tds when it is deductible then expenditure will be disallowed fully.
suppose xyz ltd has paid for work of 100000 to abc ltd for some non recurring work and forget to deduct tds ,the expenses of 100000 will be disallowed to xyz ltd.if there will no further transaction between xyzltd and abc ltd ,in that case xyz ltd can not deduct tax from abc ltd hence can not claim expenditure in subsequent year also.
what was the position earlier
as per section 40(a)(ia) all the expenses u/s 30-38 will be disallowed if
1. tds has not been deducted
2. tds has been deducted but has not been paid during previous year or in subsequent year in time as prescribed in section 200.
on
* Interest,
* commission,
* brokerage,
* rent,
* royalty,
* fees for technical/professional services payable to a resident ,
* amounts payable (for carrying out any work contract)
to a resident contractor/sub-contractor
provided that
1. if tax has been deducted and paid in subsequent year or
2. deducted in previous year but paid in subsequent year after expiry of the time limit u/s 200
then expenditure will be allowed in the year of payment of tds.
what is position now after changes in budget
Tax is deductible but not deducted
* No deduction in the current previous year
* If tax is deducted in any subsequent year, the expenditure will be deducted in the year in which TDS will be deposited by the assessee with the Government.
Tax is deductible (and is so deducted) during the last month (i.e., in the month of March) of the previous year but it is not deposited on or before the due date of submission of return of income under section 139(1)
* No deduction in the current previous year
* If tax is deposited with the Government after the due date of submission of return of income, the expenditure will be deductible in that year in which tax will be deposited.
Tax is deductible (and is so deducted) during any month but other than the last month (i.e., any time before March 1) of the previous year but it is not deposited on or before March 31 of the previous year
* No deduction in the current previous year
* If tax is deposited with the Government after the end of the current previous year, the expenditure will be deductible in that year in which tax is deposited.
though some relief has been given that in case we pay tds on or before due date of filing of the income tax return expenditure will be allowed in the same previous year but in case of non deduction of the tds when it is deductible then expenditure will be disallowed fully.
suppose xyz ltd has paid for work of 100000 to abc ltd for some non recurring work and forget to deduct tds ,the expenses of 100000 will be disallowed to xyz ltd.if there will no further transaction between xyzltd and abc ltd ,in that case xyz ltd can not deduct tax from abc ltd hence can not claim expenditure in subsequent year also.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- Requirement under FEMA &RBI
- CLOSING STOCK QUERY
- REGARDING ITR FILING QUESTION
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Rent claimed on building given on permissive possession basis
- TDS refund Indemnity Bond
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- PF wage ceiling
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
