Tds

TDS 542 views 4 replies

Interest on TDS is allowed as an expense or is disallowed?

For either of them kindly mention the section and provision.

Replies (4)

After analysis of   section 40(a)(ii) , i came to view that Interest on TDS is disallowed ..................

Any kind of penalties or interest levied for non compliance of tax laws,etc are expressly disallowed.

But as per section 40 a ii ,interest includes interest under sections 139, 215 and 217 whereas interest on TDS is u/s 201(1A) or u/s 206c(7).So my doubt still stands.

interest on TDS is penalty for assesee, becoz of non-payment or non deduction on due date. hence  is not allowed as as expense in income tax act. 


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