TREATMENT OF TDS ON EXPENDITURE DISALLOWED IN EARLIE YEAR

This query is : Resolved

SUSHIL (Querist)
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06 July 2009 Dear All,

I have querry regarding TDS on Expenditure Disallowed in earlier year.
During the finalisation of IT return of F.Y. 2007-2008. An Expenditure of Rs. 1,00,000/- incurred on July 2007 disallowed by my Chartered Accountant due to non payment of TDS on that expenditure. But later on after filing the return we deposit the TDS with interest & penalty etc. on 30.10.2008. Now what is the treatment of this kind of tds in both Income Tax retrun & TDS return. In which F.Y. the TDS & expenditure can be claimed . because the F.Y. 2007-08 is filed if I claim it in 2008-09 then the date of payment/credit is July 2007 hence the TDS Return not validate. Or If I claim it in 2007-2008 then I have to revised my both TDS & IT retrun for the F.Y. 2007-2008.

As per IT Act what is the treatment of such kind of exps. & TDS (disallowed earlier year)

Thanks & Regards

Sushil Kumar kataria

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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06 July 2009 Dear Mr Sushil,
In case of late payment of TDS, you have to revised E-TDS return of that financial year for which such expenditure is related.
As per your detail, your's CA has disallowed expense in Income Tax Return of Fy 2007-08. Now it is allow in computation of Income of FY 2008-09. i.e credit of expense is given at the time of computation of income. there is no need to revise ITR of fy 2007-08 as well as there is no need to pass any entry in books, because entry is already passed in your books when you have deposited tds.
IN BREIF : you have to revise E-tds return only.

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