CA Amit Jaiswal (Finance Manager) (2720 Points)
03 April 2010
TDS on interest for the Financial Year 2009-10 has not been deducted. How can it be rectified, so that the expense amount can become allowable.
Can it be paid alongwith interest upto 30th September 2010
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 03 April 2010
Such TDS shud be deducted and deposited before filing of income tax return to claim deduction of such interest.
regards,
ratan
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 03 April 2010
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 03 April 2010
The Finance Bill 2010 has proposed to amend section 40(a)(ia) for allowing deduction for expenses on which TDS is paid upto the due date of filing return w. r. e. f. 01.04.2009. So no dsiallowance in your hands if TDS paid before 30.09.10.
CA Amit Jaiswal
(Finance Manager)
(2720 Points)
Replied 03 April 2010
as per the amendment by FA 2008, the TDS for the m/o March can be deposited upto the date mentioned in Sec 139(1), but for hte rest of the months last date is 31st MArch of the previous year.
Please Clarify
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 03 April 2010
Good News for all of us.While passing the finance bill 2008 as provision relating to section 40(a)(ia) has been amend to give us relief from minor tds deduction defaults from retrospective effect from assessment year 2005-06 means since inception of this controversial amendments.
Updates From Finance Act 2010 given at the end,position has changed,now you can deposit TDS, related to any month of previous year by due date for Income return Filing date and can claim expense in previous year.And this provision is proposed to be applicable from financial year 2009-10.
what was the position earlier
as per section 40(a)(ia) all the expenses u/s 30-38 will be disallowed if
on
to a resident contractor/sub-contractor
provided that
then expenditure will be allowed in the year of payment of tds.
Tax is deductible but not deducted
Tax is deductible (and is so deducted) during the last month (i.e., in the month of March) of the previous year but it is not deposited on or before thedue date of submission of return of income under section 139(1)
Tax is deductible (and is so deducted) during any month but other than the last month (i.e., any time before March 1) of the previous year but it is not deposited on or before March 31 of the previous year
though some relief has been given that in case we pay tds on or before due date of filing of the income tax return expenditure will be allowed in the same previous year but in case of non deduction of the tds when it is deductible then expenditure will be disallowed fully.
In section 40 of the Income-tax Act, in clause (a), in sub-clause (ia),—
(a) for the portion beginning with the words “has not been paid,—” and ending with the words “the last day of the previous year”, the words, brackets and figures “has not been paid on or before thedue date specified in sub-section (1) of section 139” shall be substituted;
(b) for the proviso, the following proviso shall be substituted, namely:—
”Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after thedue date specified in subsection (1) of section 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid.”.
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 03 April 2010
hope this one will clarify your doubts.
regards,
ratan
Prayag Vaity
(Senior Accountant)
(38 Points)
Replied 03 April 2010
You can deposit TDS, related to any month of previous year by due date for Income return Filing date and can claim expense in previous year. So you have time to rectify ur mistake hurry up!
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