Expense allowed or disallowed under the income tax act 1961

Generally, expenses are allowed in the income tax return if they are incurred during the financial year (FY) and are related to the business.

However, there are some conditions:

1. The expense should be incurred during the FY (in this case, FY 2023-24).

 2. The expense should be related to the business and not a capital expense.

3. The expense should be supported by proper documentation (bills, receipts, etc.).

4. The expense should be accounted for in the books of accounts (Balance Sheet and Profit & Loss Account).

In your case, since you are booking the expenses in September 2024, which is after the FY end (31st March 2024), these expenses might not be allowed in the current FY's tax return.

 However, you can claim them in the next FY's tax return (FY 2024-25) as a carry forward expense.

Regarding TDS paid in October 2024, it will be allowed as a deduction in the ITR for FY 2024-25.

To answer this question, we have to look into different aspects;

First and foremost, if it is non-audit taxpayer then the answer could be no because your books must have been closed on or before 31.07.2024 and return would have been filed. In such a case you have to book those expenses in FY 24-25 and claim.

If it is audit case then propably you have a chance of claiming expenses in FY 23-24. Then comes next question, whether the expenditure in considertion pertains to FY 23-24 or not? One has to substantiate the same with documentary evidence. Since booking is done in september assumption from auditor / taxman could be 'is it overbooking of expense for profit management?' and queries will be directed in such direction. If everything sails through, then you can claim expenditure, deduct tds in september and pay the same in october with interest and revise tds return.

Also one point you have to keep in mind is, the person whose tax you will deduct in september may have already filed his / her return for FY 23-24 and will be stuck with unclaimed TDS as a consequence.