Suraj (819 Points)
04 September 2012
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 04 September 2012
Yes, you can claim the interest vide interest on others head in P/L A/c.
CA Naresh Pareek
(Practicing Chartered Accountant)
(170 Points)
Replied 04 September 2012
Yes, i agree with Mr. Prateek. You can claim interest as expense in CY if interest is paid on TDS payable of any year.
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 13 September 2012
u should provided the interest on TDS in last year for relevant period. but it is not provided and paid in current year. However you can show this in Current P& L but it shall not be allowed as exp under Income tax whether it is for current year or last year.
CA Naresh Pareek
(Practicing Chartered Accountant)
(170 Points)
Replied 15 September 2012
When any amount paid as interest, is of compensatory nature, it is allowed as expense. And when any amount paid, is of penal nature it is not allowed in income tax.
In present case, Interest on TDS is of compensatory nature not of penal nature, so it will be allowable as expenditure under income TAx Act.
CA Naresh Pareek
(Practicing Chartered Accountant)
(170 Points)
Replied 28 September 2012
Sorry friends My earlier post is wrong. Any Interest paid under Income TAx Act is disallowable exp. under Income TAx Act. Ineterst on TDS is Payable under Income TAx ACt, 1961, so it is disallowable.
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