SHORT DEDUCTION OF TDS

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A J Sankar (Querist)
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21 October 2008 What will happen, if the TDS required to be provided is provided at low %.
Is there any penalty or is there any dissallowance in that case? It disallowance is there - is entire amount dissallowed or proportionate amount(ie to the extent of lower deduction)
Please clarify me

Guest

Guest (Expert)

21 October 2008 the said rule as I written prior to this will be applicable and as u asking about proportion then law is silent about it.
as per income tax act the amount of exp will be allowed in the year when it's paid.