Disallowance of TDS late payment

TDS for the period from Apr to Feb can be paid in the month of march alongwith the interest for the late payment. Payment of TDS in march will not amount to diallowance of any expenditure incurred in the month of apr to feb.

TDS for the month of march shall be deposited on or before the due date of filing return u/s 139 i.e 31st july for asessee to whom tax audit is not applicable and 30th sep for whom the tax audit is applicable.

agreed to Fatema word by word. :)

I too......

 The amendment mentioned by Fatema came in Finance Act 2008

Fatema is rite..

Fatema is rite.

yes fati is rite

as per section 40(a)(1a), if tax has been deducted at source upto last of february of previous year, tds amount should be paid till 31\3 of relavent previous year .if tax has been deducted at source in the month of march of relavant previous year it should be paid till tha last date of filling of return of income . so all expenditure is allowed. but u have to deposited intt. in case of late deposited of tds amount with the govt.

i agreed with narender paer ans

I agree with Fatima. But i have small doubt. If TDS is paid without interest. In this situation also expenditure allowed for deduction?.

yes... if tds is paid without interest, even then expenditure is allowed. this point will be shown in form 3CD while reporting tax audit.

hello narendra for claiming deduction of exp tds should be deductible & deducted in march not only deducted if liable to be deducted before march when tds is deposited before due date of return u/s 139(1)

expenses shall be allowed if tds is deposited by the end of the previous year in respect of deduction made on any bill credited

 during the year. However, he will have to pay interest for late deposit of tds

Absolutely Correct...thanks Fatema