Tds

This query is : Resolved 

01 February 2013 Will salary expense be disallowed if TDS is not deducted?
What if there is shortfall of TDS deducted?

01 February 2013 There is no section which disallows salary paid to a Resident on account of non deduction of TDS.

However if salary is paid to a non-resident or paid outside India, expenses would be disallowed if Tax is not deducted at source.

01 February 2013 sec 40(a)says about interest, commision or brokerage, rent, royalty, fee for technical & professional services, contractor payment. But it doesn't include salary. So salary is allowed if TDS is not deducted




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