Late fees of income tax and gst

Indirect expenses....

Agreed with Raja PM, claim as Indirect Expenses

The late fees of income tax and GST are considered as indirect expenses of business1. This means that they are not directly related to the production or sale of goods or services, but are incurred for the general operation of the business. Indirect expenses are usually deducted from the gross profit to arrive at the net profit of the business.

However, you should also note that the late fees of income tax and GST are not allowed as deductions under Section 43B of the Income Tax Act, 19612. This section disallows the sum which are not paid in the financial year as well as not paid before the due date of filing income tax return. Therefore, you should pay your taxes and GST on time to avoid any penalties and interest charges.

Late fees of income tax and gst

It's Indirect expense , but it should be disallowed

There is no provision in Income Tax for disallowance of late fee and interest.