Disallowance u/s40(a)(iii) delay in deposit of tds on salary

Sir, you are right.

The referred section applies in cases of non deduction/non payment of TDS. Delay in remittance of TDS has no relevance to decide allowability.

i agree with Shyam

according to me also there is no chance of disallowance,  the employer has to pay the interest on that Delayed TDS. shyam is rite

Salary will not be disallowed for non deduction or late remittance of TDS. The employer has to remit the TDS amount along with interest for the default period.

There is no disallowance for non deduction or late remittance of TDS on salary unlike the other expenses where TDS arises. The amount of TDS along with the interest for the delayed period must be remitted.

SECTION 40(a)(ia) uses the words  deducted  and also the word paid ..............so when the legislature wanted payment as precondition it has said so.

But section 40(a)(iii)  does not prescribe any condition for payment

SECTION 40(a)(ia) uses the words  deducted  and also the word paid ..............so when the legislature wanted payment as precondition it has said so.

But section 40(a)(iii)  does not prescribe any condition for payment

IF I PAY TDS AMT IN JUN WHICH WAS SUPPOSE TO BE PAID IN MAY, WHAT IS THE RATE OF INTEREST OR PENALTY AMT

I would like to know that amendment made in section 40 (a) late payment of TDS will not disallow expenditure, if expenses related to March itself. and kindly give provisions in detail.

U can refer to Delhi Tribunal ruling in the case of Dolphin Drilling . 121 TTJ 489 or Mumbai Tribunal in the case of Rolls Royce MArine India 2009-TIOL-570-ITAT-MUM. The case is squarely covered and such salary expense shall not ne disallowed if TDS has been deposited before filing of ROI.