As per section 40(a)(ia)-tds to be deducted on Payment or bill whichever is earlier basis.So,Tds accurued for the month Apr 07 to Feb 08 to be paid Every month 7th .But March 08,Tds to be paid before 30.09.2008.then only the expenses allowed for The Py:2007-2008.
the amedment in the sec 40(a) iia is applicable only the expense booked in the financial statement on the last day of the financial year i.e 31st march and it will not applicable to the whole year . if any expense booked in the books and tds on that deducted then the payment for that tds amt will be allowed upto 30.9 i.e before filing the income tax return.