If a company paid Interest to the Dept. for not deducting TDS as per their assessment, the interest and Penality thus paid is allowable as an expense or not?
19 May 2008
YES SRI HEMANT IS RIGHT. PENALTIES AND PENAL INTEREST ARE NOT ALLOWABLE EXP.,UNLESS ONE COULD CAMOUFLAGE THESE EXP. UNDER SOME OTHER HEADS IN A DISGUISED MANNER/DEDUCTED FROM SOME RELATABLE INCMOME. R.V.RAO
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