16 July 2010
Dear sir, TDS liability under section 194j for the financial year 2009-2010 was paid after the due date ie after 31st may 2010. will the related expenditure be dissallowed for the financial year 2009-2010 under the I.T act?. if it is paid after the due date ie after 31st may 2010 will the related expenditure be allowed as expenditure in the financial year 2010-2011?.
16 July 2010
Expenses is allowed in Assessment year 2010-11 if it is paid on or before the due date of submission of return of income under section 139(1) As per section 40(a)(ia) of the Income Tax Act,if the Tax is deducted during the previous year and deposited to the Government on or before the due date of submission of return of income under section 139(1), Expenses is allowed in the year in which tax is deducted.
16 July 2010
Union Budget 2010 amended the due date for the payment of TDS for the first eleven months of the previous year to align it with the due date prescribed for the last month of the previous year being the due date prescribed under section 139(1) of the Act. So, as per the new amendment the due date of depositing the TDS for all the payments made has been made to Section 139(1) of the Act, being the due date prescribed for the filing of returns.
This amendment will take effect retrospectively from 1st April, 2010, and will, accordingly, apply in relation to the assessment year 2010-2011 and subsequent years.
i.e expenses allowed in FY 2009-10 ay 2010-11 in your case.
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