FATEMA (CHARTERED ACCOUNTANT) (719 Points)
14 March 2011Dear all,
My client did not deduct TDS on salaries for one of his employee.That employee paid last installment of advance tax a day before.Client committed a default in deduction of TDS.I want to know that will salary for that particular employee will be allowed as expenditure because that employee has already paid the advance tax?Shall we pay the interest which is due to delay in payment of tax deduction at source?
Regards,
Fatema.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 14 March 2011
disallowance for non deduction of TDS does not works for salary payments, hence allowed.
Pankaj Arora
(Learner)
(3134 Points)
Replied 14 March 2011
yes tds not deducted on salary will not disallowed u/s 40a(ia)
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 14 March 2011
so we are not suppose to take any action for the default...right?
CA SHRIPAL LUNIYA
(CA, CS Final & M.Com)
(744 Points)
Replied 14 March 2011
CA SHRIPAL LUNIYA
(CA, CS Final & M.Com)
(744 Points)
Replied 14 March 2011
| Originally posted by : FATEMA | ||
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so we are not suppose to take any action for the default...right? |
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CA Surya Kumari
(CA)
(17 Points)
Replied 14 March 2011
Yes, Sec 40(a)(ia) does not operate in respect of salary payments and non deduction thereon. Only if salary is payable outside India or to a non resident and tax on that has not been deducted , will be a disallowable expenditure.
Anila
(Article Assistant)
(177 Points)
Replied 14 March 2011
| Originally posted by : CA Surya Kumari | ||
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Yes, Sec 40(a)(ia) does not operate in respect of salary payments and non deduction thereon. Only if salary is payable outside India or to a non resident and tax on that has not been deducted , will be a disallowable expenditure. |
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Ranjeeth Balasundaram
(CA)
(41 Points)
Replied 28 March 2011
Murtaza I Bhagat
(Tax & Finance Consultant)
(10523 Points)
Replied 28 March 2011
Dept. has very much sure about some mistakes like non deduction or less deduction from salary its possible but its not means that salary receiver default in tds deduction & expenditure.....
salaried person have to pay tds in regular installments.......as advance tax.....if he/she didn't pay then he has to pay int. u/s 234B,C......of advance tax... but if deductor forgot to deduct full tds...then salaried person has to pay that tds amt as self assessment tax after march.....
Thus, disallowed u/s 40 (ia) not affact to salaried employee
CAclubindia
