Interest On TDS

This discussion explores the tax deductibility of interest paid on delayed TDS (Tax Deducted at Source) payments. The consensus, supported by case law like DCIT Vs M/s Rungta Mines Ltd, suggests that such interest expenses are generally allowable under Section 37(1) of income tax law. This is because the delay in depositing TDS is not directly linked to the assessee's core income-generating activities.