dedection of expenditure u/s 40a(i)

Interest to be Calculated Within the deposited amount of  TDS,

to that extent coming TDS shortfall, Amount to be disallowed under which section as may be applicable. 

Hi

Pls mentioned your question clearly.

IF TDS IS TO BE DEDUCTED IN F/Y07-08 AND DEPOSITED IN F/Y 08-09, THE EXPENSE WILL BE ALLOWED BECAUSE AS MENTIONED BY U TDS IS DEPOSITED BEFORE RETURN FILING .IF TDS IS DEPOSITED AFTER FILING OF RETURN IN THAT CASE EXPENSES WILL BE DISALLOWED

I understood your question like this

you incurred certain expenditure in say in March 2008

you deducted tax at source on that expenditure while making the payment to the pary in March 2008 itself.

you did not deposit the tax as per the due date

you deposited the tax before filing the return for A.Y 2008-09

you want to know whether the expenditure is allowed or to be disallowed under 40(a)(ia).

These provisions are amended in the Finance Act 2008 retrospectively , and as per the changed law,

if any expenditure in incurred , say  in the month of March 2008 and the tax that has to be deducted while making the payment/credit which ever is early is deposited before the due date for filing of the return  say before 30-9-2008 such expenditure is to be allowed for the assessment year 2008-09 itself.  BUT DO REMEMBER THE EXPENDITURE IS RELATING TO ONLY  2008 MARCH MONTH( INCURRED OR CREDITED)

If the expenditure is incurred in Say Feb 2008 and tds was deposited in the month of Say September 2008  then you can not claim such expenditure for A.Y 2008-09( you can make a claim in A.y 2009-10)

I wish you all the best, with a request to pose the question in a lucid style with exact details for a better and convincing answer.