tds after after due date

Sec 40(a)(ia) of the Income tax act clearly says that amount paid without deduction of tax or where tax has been deducted, amount not remitted to the Govt., It will allowed as a deduction in computing the income of the previous year in which such tax has been paid. In your case the interest will be only allowed in the year of payment. So, the interest should be disallowed.

should we ourselves disallow this? if yes, then where should this be done-in the ITR or in the profit & loss account itself? if we do not disallow it ourselves, have we left a chance for AO for 148 if he does not disallow it in the current year's assessment? also guide whether AS-22 becomes applicable if we disallow this exp. on our own? Please suggest the treatment of deferred tax in both the cases-disallowing in the ITR or in P & L.. Thanks..

Hello Priyanka, The interest or Penalty paid for our mistake is not allowed as deduction it would be better if in the computation of income you disallow the same and add back to the profits/income. If this is deducted us 148 you will also have to shell out with interest and additional penalty.

It should be disallowed in the P&L adjustment account/Memo not in P&L account. As for as dererred tax working also it should be shown as Non recurring Items. Based on Prudence policy the same need not consider in the financila statements.