Tds payment
This query is : Resolved
Santosh Kumbhar
(Querist)
24 March 2014
what if TDS booked for Feb-14 not paid before 31st march 14
CMA Ramesh Krishnan
(Expert)
24 March 2014
Need to pay with interest till the payment date. 1.50% per month from the date of deduction
Santosh Kumbhar
(Querist)
25 March 2014
Feb-14 Expenses will not be disallowed ?
27 July 2025
Good question!
Even if TDS deducted in Feb-14 is **not paid before 31st March 2014**, the expense **will generally not be disallowed** under the Income Tax Act **provided the TDS is paid subsequently with applicable interest**.
---
### Key points:
* **Interest @1.5% per month (or part of month)** from the date of deduction till actual date of payment applies under **Section 201(1A)**.
* Once TDS and interest are paid, the expenditure is eligible as a business expense.
* If TDS is not paid at all or payment is delayed without interest, then the expense may be disallowed under **Section 40(a)(ia)**.
---
### So, paying TDS late with interest avoids disallowance.
---
Even if TDS deducted in Feb-14 is **not paid before 31st March 2014**, the expense **will generally not be disallowed** under the Income Tax Act **provided the TDS is paid subsequently with applicable interest**.
---
### Key points:
* **Interest @1.5% per month (or part of month)** from the date of deduction till actual date of payment applies under **Section 201(1A)**.
* Once TDS and interest are paid, the expenditure is eligible as a business expense.
* If TDS is not paid at all or payment is delayed without interest, then the expense may be disallowed under **Section 40(a)(ia)**.
---
### So, paying TDS late with interest avoids disallowance.
---
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