Section 40

 

No TDS deducted on Salary payment in India to a resident, whether such payment is allowed u/s 40 or not?
 
I think it is allowed u/s 40, since it is paid in India and to resident. Section 40 requires deduction of TDS form salary in case of payment:-
a) outside India
b) in India to Non resident
Since Salary payment in India to a resident is not covered under section 40, that is why it is allowed, even though TDS had not been deducted. Am i right? Please Clear.
 
Thanks you for giving your valuable time to  clear my doubt.   
Replies (2)

yes you are absolutely ryt

Please go through the follwing link, which says that no disallowance will be attracted while calculating the Income from Business, if TDS has not being made on salaries paid to employees. In such cases, the employee will have to pay the tax by way of self-assessement  in the Asst Year alongwith interest if any u/s 234B&C.

Only if salary is paid to non-resident outside India then in such case only TDS is requried to be made & if no TDS is made then the entire salary paid is disallowed.

/forum/default-in-deduction-of-tds-on-salaries-134632.asp

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