interest on tds

Hello Shobhit!!

I think the intrest on TDS should be booked in the year when there is a default. The provision for the same should be made in the same year i.e. 31st March 2008.

Others Views are Welcomed

Regards

Rashmi

Hi friends!!

The accountability of the interest on TDS would come only when it is an allowable expenditure within the Income Tax Law.

You should note that the interest u/s. 201(1A) on TDS payments arise because of the fact that the taxes are not properly deducted or after deducting have not been remitted the Government's A.c in time. It is a case of statutory vioation and the interest itself is of a penal nature.

Therefore, I stromgly feel that it is not an allowable expenditure.

The deductor has to simply absorp the same in his accounts.

Good Bye!! Cheers!!

thanks rashmi

thkz ramakrishna