PAYMENT OF TDS ON SALARIES HAS BEEN MADE THROUGH CASH AMOUNTING RS 1000000 INCLUDING INTEREST.
WILL THIS ATTRACT ANY DISALLOWANCE UNDER INCOME TAX ACT? OR ANY OTHER TAX IMPLICATIONS? PLEASE EXPLAIN
NIKITA (CA FINAL, CS) (111 Points)
07 August 2012PAYMENT OF TDS ON SALARIES HAS BEEN MADE THROUGH CASH AMOUNTING RS 1000000 INCLUDING INTEREST.
WILL THIS ATTRACT ANY DISALLOWANCE UNDER INCOME TAX ACT? OR ANY OTHER TAX IMPLICATIONS? PLEASE EXPLAIN
Patel Dhaval
(Audit article)
(79 Points)
Replied 07 August 2012
IT WILL NOT ATTRACT ANY DISALLOWANCE UNDER THE ACT.
- RULE 6DD(a)
CA. Subhash Dangi
(Chartered Accountant)
(1784 Points)
Replied 07 August 2012
Is it practical question or your academic interest?
First of all, all TDS should be remitted to IT authority compulsorily thro E-Payment mechanism.
Hence the question of accepting the huge cash does not arise. Further TDS on salary is neither income nor expenditure to the company but it is only obligation on the part of company to deduct tax and remit the same within due date by playing only Intermediary Role. No impact on such remittance under IT Act..
As far as Interest on delayed payment is concerned, it is disallowed under IT act.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
