Expenditure by way of penalty and fine

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2014 Does Interest on late payment of taxes (Income tax, Service Tax, TDS) comes under Expenditure by way of Penalty and Fines for violation of any law at the time in force and have to be reported in 3CD point no. 21(a).

Also kindly confirm that these expenditures are disallowed under Income Tax Act,1961?

CA VISHWAKEERTHI.P.S.

CA VISHWAKEERTHI.P.S. (Expert)
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13 September 2014 Interest on income tax not allowed because its owner liability .(Income tax it self not allowed in income tax act then interest definitely not)

Then Interest paid (other than income tax) are not for violation of provision its in the nature of compensation in nature so allowable under the Income tax ACt.

But penalty levied due to violation of provision of the Act . So not allowed as expenses.

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2014 My doubt is not cleared?

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