Interest paid for late tds payment entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2012 Hi all
Can any one tell me what will be the Entry for Interest Paid for Late TDS payment. Is Interest paid for TDS an expense? Kindly tell me immediately.
Thank you.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 September 2012 Yes. Interest on delayed payment of TDS is expenses only. you can debit as indirect expenses

But while computing book profit as per Income tax the same will be disallowed

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2012 Thank you for your reply.
That means this Late TDS interest expense will be taxable right?
Thank you again.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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01 August 2024 interest paid for late TDS payment is indeed an expense, and it will be taxable, but the expense itself is deductible under Section 37(1) of the Income Tax Act, reducing the taxable income of the company.