Sec:- 40(a)(ia) for the a.y. 2008-09

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2012 TDS is deducted in the month of April 07 to Februay 08 but it has been deposited after end of previous year i.e 31/03/2008 will I get the expenses allowed in the same previous year or it will be allowed in next year...

I have paid the TDS with interest then also querry has been raised by the ITO...?

Kindly provide the case law if any...

Regards

CA Manish

CA Manish (Expert)
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27 November 2012 If the TDS is deposited before the due date of filing return as per sec 139(1) then the exps will be allowed in the previous year.

If paid after the due date of filing the return then exps will be allowed in the year of payment.

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2012
The answer is due to Ammendment in Finance Act, 2010 or it wont make any difference of that Ammendment..?

Regards

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 November 2012 For AY 2008-09 Finance Act 2007 is applicable.

Accordingly in the above case deduction of expense shall be allowed only if the TDS has been deposited BEFORE the due date. If is has been deposited AFTER the due date, then deduction shall be allowed in the year in which payment is made.