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5531 Points
Joined December 2013
As per section 40(a)(i) & 40(a)(ia), besides other conditions, one of the condition for disallowance is that tax "has been deducted in the subsequent year". It means that tax should have been deducted in the P.Y. itself (i.e., entries for TDS Payable should have been passed in the relevant P.Y itself) but may be paid in the subsequent year (with interest, if applicable) before due date of filing return of income us/-139(1) for avoiding disallowance of full expenditure u/s-40(a)(i) or upto 30% of such expenditure u/s-40(a)(ia).
Hence, ommission of 'TDS payable' entry in the P.Y. 2014-15 itself either by the assessee or by it's auditor may result into disallowance u/s-40(a)(i) or 40(a)(ia), if comes into the notice of A.O. either due to it's materiaity or otherwise.
Hope ur doubt is cleared now..