TDS issues

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2010 If an amount is booked as provision for foreign trip of the eligible employees for their performance in the F.Y. 2009-10 in the year 2009-10. But the tour will be made in the next year and TDS will also be deducted in the next year on this expense. The name of the traveler is also not yet been finalized.

Then whether the Dept may disallow the traveling expenses in the F.Y. 2009-10? Whether there will be any interest or penalty liability also?
How the same can be claimed as expenditure in the year 2009-10?

CA. RAJESH Kr. MAURYA

CA. RAJESH Kr. MAURYA (Expert)
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25 May 2010 Well friend, the Income Tax disallows all provisions made for liabilities to be incurred. So, untill you expend it, there is no way to claim it as expenditure