We are a Company have incurred some expenses in the F.Y. 2010-11 on which TDS u/s. 194 of the IT is applicable.
However, till date (8.08.2011) through oversight, we have not paid TDS. We want to pay the same with applicable rate
of Interest now.
On payment of the TDS before filing of IT return i.e. 30.09.2011, Whether the expenses would be deductible from taxable
income for the F.Y. 2010-11 ?
Kindly advice please.
Thanks a lot.
Valerian D'Souza
Accounts Manager
u/s 271C failure to deduct TDS - liable to pay simple interest at 12% p.a on amount of tax liable to be deducted.
It willl be deductible.
ineterest will be 1.5 per month i.e 18% p.a
Failure to deduct tax or pay
according to section 201 of IT Act.
Any person responsible for deducting tax at source is liable to pay interest if he
(a) does not deduct the tax ( either whole or part )
(b) After deducting the tax, fails to remit the tax to the govt,
- simple rate of interest @ 15% ( earlier it was 12%) p.a. on the amount of tax.
period of interest will be calculated from the date of on which tax deductible to the date on which such tax is actually paid.
Time limit -- It shall be paid before furnishing the quarterly statement for each quarter.
Many Thanks and very kind of you, request you to clarify, on payment of the TDS before 30-09-201, whether the relevant expenses of F.Y. 2010-11, will be deductible as expenses ?
CAclubindia
