Tds

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ca tarun sharma (Querist)
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22 July 2009 hello sir can u tell me if limit of deducting tax exceed in the month of march & tds is deducted in whole amount in march and paid in april then whether the exp incurred from april to feb of previous yr will be disallowed u/s 40(a) or not & whether int will be paid on tds deposit in april
if allowed then why & under which provision

please give ur opinion

Abhishek Mohta

Abhishek Mohta (Expert)
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22 July 2009 It depends on the situation.

1. If the person deducting TDS didnt know about the limit getting exceeded then there will be no interest levied if the TDS on the entire amount is deducted in March and paid before the due date.

2. However, if the payment was regular and the knowledge of limit being exceeded was there with the payer then interest will be charged u/s 201.

In either case expense will be allowed.