Disallowance u/s 40 ( a) ( ia)

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CA HANI (Querist)
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14 September 2009 The assessee has not deducted TDS during the accounting year 2008 -2009 on certain expenses, however during the current year they have realised it and deposited the TDS on 01.09.2009 , whether the expenses will be allowed in the assessment year 2009 -2010 or in the asessment year 2010 -2011

Zeeshan

Zeeshan (Expert)
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14 September 2009 dear hani,
in the case given by you

1. expenses upto feb.2009 will be allowed in the year in which the tds is paid ie 2009-10 it means in ay 2010-11.
2. but for the exp related to march, if you pay tds upto the last date to file return u/s 139 then expenses will be allowed in the same financial year.

in your case assessee has paid tds on 1.09.2009 ie before 30.09.2009 hence the expenses for the month of march will be allowed in the fy 2008-09 ie in ay 2009-10.