surchrge of tds not deducted

hey guys can you help me out with this problem

We have not deducted surchrge element of tds what are the consequences

and what is the solution

1.Proportionate amt. shall be disallowed

2.Entire expenses allowed as we have deducted Basic tax rate properly

3.Any other option

 

 

Replies (4)

The provision is not clear on the matter envisaged by you. It only states that it should be disallowed if not complied.  If we go strictly by the provisions, the entire expenditure has to be disallowed.

 

However, the practical solution would be to disallow the expenditure proportionately.  What do you think?

Regards/Dharmaraju

i too think proportionate way but my sir spoke to many they replied ke since this is

surchrge shortful so it will do so full allowance.

But i spoke to one of frnd he said that even if u have deducted tax

at lower rate than prescribed than also entire exp. will be allowed but den there will be penalty

he said that law is silent in repect of proportionat allowance.

so various ans. are there.I think income tax dept shuld issue circular in this respect as this is

so commom point.

 

 THE WHOLE OF THE EXPENSES IS ALLOWED.

I think Surcharge is very much part of the total tax that is to be deducted as per First Schedule to Finance Act.  Anywayz there should be basis  for our bossess in concluding that it is allowable entirely.  But its not at all free of doubts.

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