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Fees paid for late filing whether allowed as expense

Tax queries 6451 views 3 replies

Dear experts

Whether fees paid u/s 234E for late filing of TDS return is allowed as an expense while calculating income tax.

As per section 234E the person in failing to furnish TDS /TCS statement, within the specified time limit, shall be liable to pay a fee of RS. 200 for every day of delay.

There is no word used as interest/penalty/fine. So in my opinion it should be a deductible expense under the head business and profession.

Replies (3)

Any expenditure which is penalry in nature is disallowed......

agree with you.

 

I think it should not be allowed while computing the taxable income.


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