TDS on Fianacial Charges

This query is : Resolved

Devendra (Querist)
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08 May 2010 What if TDS is deducted on Financial Charges but not paid to the Government, is the expense still allowed to be claimed?

Thank You,
Regards,
Devendra

CA. RAJESH Kr. MAURYA

CA. RAJESH Kr. MAURYA (Expert)
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09 May 2010 In this respect, the recent changes in Budget 2010 dictate as follows ; If TDS is deducted in last year but deposited before due date of filing return, expense would be allowed. But Interest on delay deposit would be required to pay. (Applicable from 01/04/2010)

Earlier Provisions : If TDS is deducted in last year except last month , it has to be deposited before the end of the year. And TDS deducted in last month should have be deposited before filing of return.

If conditions violate, deductions would be allowed in the year in which TDS is paid.