TDS on intt paid on later date

This query is : Resolved

seema singla (Querist)
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26 June 2009 An assessee paid intt in Dec. 2008 and TDS was deducted on the same day. But the same was deposited on 20 May 2009.My query is whether the intt amount is deductible for the A.Y. 2008-09 or 2009-10.

chetan soni

chetan soni (Expert)
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26 June 2009 Seema,

Interest dr. to profit & loss a/c for the year 2008-09 will be disallowed.

Same will be allowed in 2009-10.

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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26 June 2009 allowed in the year in which you have deposited TDS

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CA Manish Sharma

CA Manish Sharma (Expert)
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26 June 2009 Take a reference of Section 43B of I.T. Act, 1961. It says if any sum in name of tax, duty, cess or fee is paid on or before the due date of submission of return of income and the evidence of such payment is submitted along with the return of income, then the expenditure is deductible on "accrual" basis in the year in which the liability is incurred.
Hence, this interest expenditure is deductible in FY 2008-09 if we enclose the evidence of TDS with return of income.