TDS Remittance

This query is : Resolved

Shrinaath Paravasthu (Querist)
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17 September 2010 An individual liable for Audit under section 44 AB of IT Act has failed to deduct tax at source for some payments during April - December 2009 . Now he is willing to deduct Tax @ source and remit the same before 30.09.10 , whether this expenditure can be allowed or it shall be disallowed under 40 a (1a).
If to be disallowed , then under what category
a) Tax Deductible but not deducted or
b) Tax deducted but not paid to the credit of central government within the due date

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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17 September 2010 Deduct & pay the TDS with interest on late payment...., The expenditure will be allowed.

MAHENDRA KUMAR BAGRECHA

MAHENDRA KUMAR BAGRECHA (Expert)
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17 September 2010 As per latest amendment in Finance Act 2010, this expenditure will be allowed if you deposit tds before filing of ITR.

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Shrinaath Paravasthu

Shrinaath Paravasthu (Querist)
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17 September 2010 But finance Act 2010 which has made that change is effective only from 01.04.2010 and for AY 2011-12 only , but finance Act 2009 which is applicable for AY 2010-11 says it is not to be allowed

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 September 2010 Dear Shirnaath.

Sec.40a(ia) ameneded with effect from AY-2010-11, which is restrospetive effect this was mentioned in Finance budget 2010 also. so you can pay the TDS with interest and claim the expenses