TDS last date for 31.3.09 entries

This query is : Resolved

balasundaram (Querist)
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02 June 2009
clarify

1)if credited the amount on 31.3.2009, the TDS amount is remeted to dept. with in two months. where the last day of the 2 mont is Sunday (i.e. 31.05.2009) in this case may i pay the nexday (i.e. 01.06.2009) with out interest.

2) in case paid with interest on 1 st or 2nd of June, is disallow the expenditure

taxindiaconnect

taxindiaconnect (Expert)
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02 June 2009 The answer to your first query is that yes on 1st June you can pay without interest. As per the definition of due date given in the General Clauses Act, the if the last day for any stautoty compliance is a public holiday, in such cases the next working day would be treated as the last day for due date purpose.

The reply to your 2nd query is that since you have not paid TDS on or before due date, the TDS would be disallowed in the FY in which it has been paid with interest. Thus in your case, since the TDS has been paid after the due date, if paid on 2nd June, expenditure would be disallowed for this financial year and be allowed in next FY.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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02 June 2009 I am not agree with Mr.Rajesh Dua for his second Reply. As the case asked is for the month of march tds, the expense shall be disallowed only when the TDS is not deposited upto the date of filing of income tax return, i.e 30th September. You can deposit TDS between June to september also, but you will need to pay the interest. Disallowance in current year shall be made only if it is not deposited upto the due date of filing of ITR.

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