Tax Deduction at Source

This query is : Resolved

Guest

Guest (Querist)

09 June 2009 Dear Sir

As per my knowledge payment for TDS liability for one financial year should be cleared in the same financial year except for the month of March which is allowed till the submission of Income Tax Return. If liability is not cleared in the same financial year then expense will be disallowed for the current year and will be allowed in the next financial year when the TDS payment is done.
For e.g:- TDS liability for the month of April 08 can be paid upto 31st March 2009 but it cananot be paid on 01 st of April 2009.
Lets consider the above case in which my comapany is saying we can pay liability of April 08 till the submission of return of Financial year 2008-09 to the Income Tax Dept.
Kindly provide me the section or circular which clearly states the disallownce as stated in above Example.

Regards
Vishal

Shyam Lal Naik

Shyam Lal Naik (Expert)
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09 June 2009 Sec 40(a)(ia) of the Income-tax Act.

Jitender

Jitender (Expert)
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09 June 2009 As per amendment in sec 40, TDS deducted on provisions made on 31st march can be paid upto filing of return to get the allowance of exp. In other cases TDS need to be paid on due date otherwise it will be allowable in the year of its payment.

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