If TDS Short Deducted and paid to the credit of the government, say TDS has to be deducted at 10% but wrongly deducted at 2% and the amount deducted was paid to the credit of government within due date. Question is - whether the full expenses will be disallowed under section 40(a) or prorata expenses will be disallowed?
Menu
TDS Short Deducted - disallowance?
Replies (3)
please reply with quoting the relevant section.
Hello
The said expenses will be disallowed under section 40(a) on prorata basis.
There are two views on this:
1) T.d.s deducted with inadequate amount is equal to T.D.S. not deducted and the whole expense shall be disallowed.
2) Disallowance on pro rata basis
"I will prefer to the 1st option and I will disallow the whole expense.
Recent Threads
- ITR-2 Payment Made but Status Not Updated
- Need help for ITR filing
- ITR Updated returns. Time limit for filing
- ITR 2 Processed and Refund Credited to Bank
- Freelancer or Salaried
- LTCG Tax & Indexation on Debt Mutual Funds Sol
- Section 45(5A) and 194IC with carry forward of tds
- Paid tax amount, CIN generated and challan downloa
- INTRADAY INCOME PRESUMPTIVE INCOME
- Clarification on Deemed Export Status for EOU-to-E
Related Threads
CAclubindia
