Salary paid in next FY with TDS

Tax queries 226 views 3 replies

We have paid salaries for the month of Mar'18 at end of the Apr'18 by deducting TDS as on 30/04/2018. Salary payable is laying as payable in the balance sheet as on 31/03/2018. Therefore, the same is eligible deduction under section 40a (ia), if yes kindly substantiate.

Thanks in advance

Replies (3)

Yes, the Salary expenditure will be allowed as deduction u/s 40. 

70% of Salary paid shall be allowed in FY 17-18. Rest 30% shall be Disallowed under section 40(a)(ia).

In next year i.e FY 18-19 when you paid salary and deduct TDS thereon the 30% part shall be allowed then in FY 18-19.
The amount of salary will be allowable as deduction as TDS on the same has been paid on or before the due date of filing of return.


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