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Interest on l.y. tds payable

TDS 854 views 5 replies
A PVT ltd company showed tds payable in LY balancesheet, which was paid in CY. Last year obviously interest on tds was not provided. LY TDS is paid along with interest. My qs is... Whether interest paid on tds be claimed as expense in P&L a/c? If not, how to account for the same? Thanks, Suraj
Replies (5)

Yes, you can claim the interest vide interest on others head in P/L A/c. 

Yes, i agree with Mr. Prateek. You can claim interest as expense in CY if interest is paid on TDS payable of any  year.

u should provided the interest on TDS in last year for relevant period. but it is not provided and paid in current year. However you can show this in Current P& L but it shall not be allowed as exp under Income tax whether it is for current year or last year.

When any amount paid as interest, is of compensatory nature, it is allowed as expense. And when any amount paid, is of penal nature it is not allowed in income tax. 

                          In present case, Interest on TDS is of compensatory nature not of penal nature, so it will be allowable as expenditure under income TAx Act. 

Sorry friends My earlier post is wrong. Any Interest paid under Income TAx Act is disallowable exp. under Income TAx Act. Ineterst on TDS is Payable under Income TAx ACt, 1961, so it is disallowable.


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