section 40a(ia)

As per recent amendment, TDS deducted should be deposited before 7th day of next month, except for month of March & TDS deducted in the month of march should be paid before date of filling return u/s 139.

Previously TDS deducted on last day of year to be paid before 31st May, so now 31st may not relevent.

Dear freiends /experts

I want to know whether t d s can be deposited upto due date of filing of return & whether expenses will be allowed as deduction under section 40 (a) (ia) of income tax act if so please specify circular no & date and case law if any .

On this common question variety of views have been aired on the websites. Yet concrete answer in compatibility with the law prevailing is awaited.

By general reading It is understood that except Rent and Salary all expenses paid to resident indians are allowable if paid within time timit u/s 200 (1) say for March expenses May every year. W.e.f. 01.04.2005, It is extended if tax so deducted for March transactions is paid after May but before filing of return there are two views : Expenses are allowable in that very A/Y and 2nd view suggests if TDS so deducted is paid after May , It will be considered in subsequent year say next A/Y such deduction disallowed in previous year shall be alolowed as the langauge used says " AFTER DEDUCTION HAS NOT BEEN PAID DURING THE PREVIOUS YEAR".  Despite, this no clear view is flowing from the clarifications and discusions available.  For a common good, It would be just and fair to allow deduction if for March transactions, TDS is paid before May  (200 (i) time limit) or even before due date of filing say 30th September. Disallowance would be in contravention to the Article 20(2) which is against double jeopardiance .   

Is there any precise and clear view in compatibility with the prevailing law or cany settled case law reference giving respite to such deductors who have paid tax so deducted for March transactions before filing of return.  It would help a lot to various sections. Welcome for quick valued response.

AK Bhargava