05 January 2011
A company filed ITR with loss for a.y 2010-11 by disallowing the salary paid to residents as the TDS was not paid to the government before due date. Actually salary paid to residents are not disallowed u/s 40(a) but will come under the penal sections with interest. Now the company want to rectify this mistake.
Should the company file a revised return with increased loss to be carried forward to the next year or rectify this in the next year ITR as allowable expense because the TDS is paid in the next financial year.
05 January 2011
salary expenses will not be allowed in the next year on basis of late TDS deposited as these are not covered by section 40(a), as u rightly said, in this situation revised return should be filed as also advised by Shri Aditya Maheshwari
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