30 June 2010
In case of non deduction entire expenditure will be disallowed. In case of shortfall in deduction proportionate expenditure will be disallowed.
30 June 2010
In case TDS on salary is non deducted for a non resident then expenses will be disallowed u/s 40(a). However, if TDS on salary is not deducted for resident then assessee will be assessee in default u/s 191. In this case there are 2 possibilities.
1- Amount of balance tax was deposited by employee as advance tax. In this case Assession Officer can demand interest u/s 234B and 234C from the company as the primary reponsibilty was with the company.
2-Tax not paid by the employee. In this situation balance amount and interest will be charges by assessing officer from the company.
30 June 2010
I am not agree with Mr. Sanjay Gupta. There is no disallowance on salary expenses if it is paid to resident u/s 40(a) if TDS has not been deducted on it.
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