Tds

This query is : Resolved

CA SANJAY GARG (Querist)
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27 March 2012 I am working in real estate. We are maintaining books on cash basis. We have not yet deposited any Tds. We have around 200 employees.Salary for the month of March will be paid upto 15 april which is also fluctuating not fixed. While last date for depositing TDS is 30 march. If we deposit TDS upto 20 April for which year Deduction of Salary exp will be allowed foe year ending 31.03.2012 or 31.03.2013. OR Shall I consider Salary of march which is paid in april for year ending 31.03.2012 or 31.03.2013.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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29 March 2012 Before deciding the year in which the deduction for salary will be allowed you should know under which section this can be disallowed if no deduction has been made and if after deduction the same has not been deposited.

I think you are talking of Section 40a(ia) which says if TDS is not deposited in time then it is to be disallowed and as per section 43B the same is to be allowed in the year of deposit of tax.

Sanjay,
I would like to let you know that in this section the word salary is missing. Therefore, the expenses will be allowed on the accrual basis and no dis allowance can be made on account of salary.

In case you are not clear kindly contact me at ssunderagarwal@gmail.com