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Section 43B

Dilip (Working) (408 Points)

31 July 2009

Sec 43B - tax, cess, duty or fee. is allowed on paid basis.

Can any body tell me. whether TDS is covered in meaning of tax under section 43B.

Eg: for AY 08-09. june07 TDS is paid in sept 08, before due date of filling the return. whether i can claim deduction in same year or in next AY.

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11 Replies

SANKAR KIRAN P (Top Edge of CA & CS) (246 Points)
Replied 31 July 2009

TDS for all the months except march must be paid before 31st march for the relevant previous year... but for the month of march it can be paid before filing return... otherwise it will be disallowed for that previous year....therefore,, june months payments must be made before 31st march for that year.. otherwise disallowed...!!!!

SANKAR KIRAN P (Top Edge of CA & CS) (246 Points)
Replied 31 July 2009

Sunil Kr. Sanganeria (Service) (1951 Points)
Replied 31 July 2009

TDS is not covered u/s 43B but if TDS is not paid after deduction, section 40(ia) would be attracted and the expenses on which TDS deducted ant paid will be disallowed.

CA Anand BG (Chartered Accountant) (84 Points)
Replied 31 July 2009

Tax mentioned in Sec. 43B means municipal Tax, sales tax etc.. TDS is not covered by Sec. 43B.

Provision mentioned by Sankar Kiran is applicable from 01.04.2008 i.e. from A. Y. 2009-10.

So, Dilip if your problem is related with A. Y. 2008-09, then the payment made by you before filing return will be allowed in A. Y. 2008-09.

b.srinivasan (Assistant Company Secretary) (51 Points)
Replied 01 August 2009

Originally posted by :Dilip
"	Sec 43B - tax, cess, duty or fee. is allowed on paid basis. Can any body tell me. whether TDS is covered in meaning of tax under section 43B. Eg: for AY 08-09. june07 TDS is paid in sept 08, before due date of filling the return. whether i can claim deduction in same year or in next AY.	"

hi, TDS is not covered u/s 43B. But it will attract both interest and penalty. Tax referred u/s 43 B is those Taxes, cess etc. that are debited in the respective profit and loss account by March end ant that should have been paid before filing of the return. Even Sales tax is not properly covered direct to 43B. If TDS is not paid then the related expenses also wolud not be allowed as a deduction. srinivasan.b

Varun (Student) (82 Points)
Replied 01 August 2009

tds is not covered u\s 43B bcz this section is for expense to be allowed on paid basis and income tax is not allowed as expense

CA. Megha Topiwala (Job) (1534 Points)
Replied 01 August 2009

ans of Mr. Anand BG is absolutly correct... this is amemdnemt made by finance act 2008.....

Suresh M (Financial Analyst) (124 Points)
Replied 06 August 2009

THERE IS A LIABILITY OF ISSUING TDS CERTIFICATES FOR WHAT YOU DEDUCTED TILL MAR. As per Income Tax Rules - The TDS what you have deducted for Mar'09 which has to be remitted to IT on restricted time of 7th April'09 or before end of May'09. And your liability of TDS Certificate should be issued before 31 May.

Sandeep (Chartered Accountant) (60 Points)
Replied 07 August 2009

The new provision is applicable from 01/04/2008. But for the previous years before 01/04/2008, if the payment is not made within the duedate prescribed, such expenditure shall be disallowed.

Neha Gupta (Student) (41 Points)
Replied 02 April 2010

Can anybody tell me if " Audit fee to ca" is within the perview of section 43 b ? If yes and if it is not paid till september 30,2010 then wat will be the tax treatment? nothing about TDS is mentioned ....