Disallowence

424 views 5 replies
tds of march paid on 28th april 2015 is a disallowence on ay 2015-16?
Replies (5)

No, There shall be no disallowance, Since the TDS has been deposited on or before due date of Filing Return under section 139(1) i.e., 28th April.

refer Section 40(a).

Due date for TDS for the month of march is 30.04.2015
Agreed with both the anwer

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..

No disallowance will be welcomed as the TDS has been paid before the due date of filing of ITR.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register