disallowance of expenditure under B/P

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2011 sir salary paid to resident employee in india without deducting TDS then it will be allowed in computing business income or not in assessement year 2011-12
if not allowed under which section.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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04 March 2011 Salary is not covered u/s 40(ia) of the I.T. Act. You will get full deduction of the amount of salary paid even no tDS is deducted.

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CA KRISHNA KUMAR DARUKA

CA KRISHNA KUMAR DARUKA (Expert)
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04 March 2011 It is allowed

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CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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11 March 2011 Hi,

Though it will be allowed as a deduction, the provisions of Sec 271C will be applicable, which says

"Any person failing to deduct tax at source, wholly or partly U/Sec 192 to 196D {Chapter XVII-B} will be levied penalty equal to tax not deducted"

Thank You,

Regards
CA.Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons