non deduction of TDS on interest

Such TDS shud be deducted and deposited before filing of income tax return to claim deduction of such interest.

regards,

ratan

Duplication /forum/non-deduction-of-tds-on-interest-76907.asp

The Finance Bill 2010 has proposed to amend section 40(a)(ia) for allowing deduction for expenses on which TDS is paid upto the due date of filing return w. r. e. f. 01.04.2009. So no dsiallowance in your hands if TDS paid before 30.09.10.

as per the amendment by FA 2008, the TDS for the m/o March can be deposited upto the date mentioned in Sec 139(1), but for hte rest of the months last date is 31st MArch of the previous year.

Please Clarify

Good News for all of us.While passing the finance bill 2008 as provision relating to section 40(a)(ia) has been amend to give us relief from minor tds deduction defaults from retrospective effect from assessment year 2005-06 means since inception of this controversial amendments.
Updates From Finance Act 2010 given at the end,position has changed,now you can deposit TDS, related to any month of previous year by due date for Income return Filing date and can claim expense in previous year.And this provision is proposed to be applicable from financial year 2009-10.

what was the position earlier
as per section 40(a)(ia) all the expenses u/s 30-38 will be disallowed if

1. tds has not been deducted
2. tds has been deducted but has not been paid during previous year or in subsequent year in time as prescribed in section 200.

on

• Interest,
• commission,
• brokerage,
• rent,
• royalty,
• fees for technical/professional services payable to a resident ,
• amounts payable (for carrying out any work contract)

to a resident contractor/sub-contractor

provided that

1. if tax has been deducted and paid in subsequent year or
2. deducted in previous year but paid in subsequent year after expiry of the time limit u/s 200

then expenditure will be allowed in the year of payment of tds.
 

Tax is deductible but not deducted
 

• No deduction in the current previous year

• If tax is deducted in any subsequent year, the expenditure will be deducted in the year in which TDS will be deposited by the assessee with the Government.

Tax is deductible (and is so deducted) during the last month (i.e., in the month of March) of the previous year but it is not deposited on or before thedue date of submission of return of income under section 139(1)
 

• No deduction in the current previous year

• If tax is deposited with the Government after the due date of submission of return of income, the expenditure will be deductible in that year in which tax will be deposited.

Tax is deductible (and is so deducted) during any month but other than the last month (i.e., any time before March 1) of the previous year but it is not deposited on or before March 31 of the previous year
 

• No deduction in the current previous year

• If tax is deposited with the Government after the end of the current previous year, the expenditure will be deductible in that year in which tax is deposited.

though some relief has been given that in case we pay tds on or before due date of filing of the income tax return expenditure will be allowed in the same previous year but in case of non deduction of the tds when it is deductible then expenditure will be disallowed fully.


In section 40 of the Income-tax Act, in clause (a), in sub-clause (ia),—

hope this one will clarify your doubts.

regards,

ratan

You can deposit TDS, related to any month of previous year by due date for Income return Filing date and can claim expense in previous year. So you have time to rectify ur mistake hurry up!

Thanx to All