Master TDS & TCS Provisions with Critical Issues. Register Now!

dedection of expenditure u/s 40a(i)

27 September 2008

please let me know if assessee dedecte the tax in pv 07-08 and deposit in august 08.(without penalty) the expenditure is allow or not although the tds paid in next year but before the filing the reture?

Reply
Follow
Share

6 Replies

G.M.Muthu (Associate) (54 Points)
Replied 27 September 2008

Interest to be Calculated Within the deposited amount of TDS,

to that extent coming TDS shortfall, Amount to be disallowed under which section as may be applicable.

Upgrade to CAclubindia Pro. Subscribe Now!

Indrajit Mondal (Service) (142 Points)
Replied 27 September 2008

Pls mentioned your question clearly.

tarachand (student) (30 Points)
Replied 27 September 2008

Originally posted by :DIXIT KUMAR RANKA
"	please let me know if assessee dedecte the tax in pv 07-08 and deposit in august 08.(without penalty) the expenditure is allow or not although the tds paid in next year but before the filing the reture?	"

Divya sharma (CHARTERED ACCOUNTANT) (250 Points)
Replied 27 September 2008

IF TDS IS TO BE DEDUCTED IN F/Y07-08 AND DEPOSITED IN F/Y 08-09, THE EXPENSE WILL BE ALLOWED BECAUSE AS MENTIONED BY U TDS IS DEPOSITED BEFORE RETURN FILING .IF TDS IS DEPOSITED AFTER FILING OF RETURN IN THAT CASE EXPENSES WILL BE DISALLOWED

CA Ravish Trivedi (The Possibilities are Infinite...) (772 Points)
Replied 27 September 2008

tds amount should be deposited alongwith the interest .hence part payment of tds is not allowable.

Upgrade to CAclubindia Pro. Subscribe Now!

Nalam Ravindranath (78 Points)
Replied 27 September 2008

I understood your question like this

you incurred certain expenditure in say in March 2008

you deducted tax at source on that expenditure while making the payment to the pary in March 2008 itself.

you did not deposit the tax as per the due date

you deposited the tax before filing the return for A.Y 2008-09

you want to know whether the expenditure is allowed or to be disallowed under 40(a)(ia).

These provisions are amended in the Finance Act 2008 retrospectively , and as per the changed law,

if any expenditure in incurred , say in the month of March 2008 and the tax that has to be deducted while making the payment/credit which ever is early is deposited before the due date for filing of the return say before 30-9-2008 such expenditure is to be allowed for the assessment year 2008-09 itself. BUT DO REMEMBER THE EXPENDITURE IS RELATING TO ONLY 2008 MARCH MONTH( INCURRED OR CREDITED)

If the expenditure is incurred in Say Feb 2008 and tds was deposited in the month of Say September 2008 then you can not claim such expenditure for A.Y 2008-09( you can make a claim in A.y 2009-10)

I wish you all the best, with a request to pose the question in a lucid style with exact details for a better and convincing answer.