Disallowance U/s 40(a)

This query is : Resolved

Amrendra Kumar (Querist)
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06 March 2009 Pl resolve my issue:

Salary and turnover based commission has been paid to directors of the company but TDS has not been deducted at all. I want to know, whether salary and commission paid to the directors are disallowed in the hand of company and salary and/or commission paid to the directors be added back in the computation of income of the company.

Amrendra

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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06 March 2009 If TDS is not deducted, so it should be added back as provided u/s 40(a) for Income Tax purpose i.e. TDS under chapter XVIIB is not deducted or not been paid during PY or in the subsequent year, before the time prescribed u/s 200(1).