Deductibility of Interest on Income-tax

RAJU (LEARNER) (1089 Points)

04 June 2010  

Dear Members,

Section 40(a)(ii) provides that any sum paid on a/c of rate or tax levied on the profits or gains of any business or profession.... are not deductible.  In view of this provisions, would like to know the following;

 

1. Whether interest paid on Income-tax U/s.234A, 234B and 234C is deductible?

2. Whether Interest paid on late remittance of TDS by the payee/employer is a deductible expenditure?

3. Whether income-tax  on Income from Other sources is deductible? Section 40(a)(ii) provides that only tax levied on profits & gains of any business or profession is not deductible.  By logic and practice, I can understand that income-tax is not a deductible payment. But would like to know the basis and relevant provision in respect of non-allowability of Income-tax paid on Income from other sources...

 

Thanks in Advance

Dharmaraju