Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2012 Dear experts,
please help to resolve my querry,
If assesee fails to deduct TDS as per rules and but he paid TDS out of his own pocket to the goverment can he claim deduction for TDS as expense while calculating Profits from business and gains ??????????
Please reply urgently.......

CA MANISH SONI

CA MANISH SONI (Expert)
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25 January 2012 No deduction

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 January 2012 No you can not claim deduction for TDS submitted out of your own pocket. You should have deducted the TDS. Now you paid this out of your own pocket to avoid dis-allowance of the expenditure. Now you can not claim this as deduction.

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Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2012 Thanks experts
Than whould be accounitng treatment for TDS paid out of own pocket ? would it be reduced from capital for such payment ?

Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2012 And what is logic behind not allowing TDS as expense if it is paid out of own pocket ???

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 January 2012 You were supposed to deduct TDS but you did not. Now you will have to pass the entry as if you deducted the TDS and shortfall will be adjusted as amount short received. Nowhere it will give indication that it was paid out of own pocket.

Logic behind not allowing it as deduction is simple it is not related to your business expenditure and you were supposed to collect this amount from payee. So you will have to suffer for your own mistake.

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