My client has not deducted TDS on the director remuneration of Rs 3,00,000. We will now get it deducted for AY 12-13 before 30th september 2012 for tax audit. Claiming Basic exemption limit of Rs 1,80,000 we will deduct TDS on the balance amount of Rs 1,20,000. So the TDS amount will be Rs 12,360 (incl of Cess) Will I get the deduction of the TDS amount of Rs 12,360 ?
5 Replies
Tejas Jain
(Chartered Accountant)
(314 Points)
Replied 18 September 2012
Yes, you will get the deduction of TDS Amount but not the amount of interest on delay in payment of TDS.
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 18 September 2012
as per section 43B if payment is made before the filing of return u/s 139(1) then it is allowable..
In your case if your payment is made before the filing of return then it is allowable, if not then it will be allowable in the year of payment..
Regards,
Siddharth Bumb
sidbumbhelp @ gmail.com
WWW.SIDDHARTHBUMB.BLOGSPOT.COM
Jairam J
(CA, B.COM(Hons.))
(382 Points)
Replied 18 September 2012
If director's remuneration is in the nature of other than salary then no need to deduct tds as this amendment is applicable only from AY 13-14.. But if it is in nature of salary.. then sec 192 applies..
Consequently
no disallowances u/s 40(a)(ia) or 40(a)(iia) (assuming director is a resident) so yes whether tds is deducted u/s 192 or not u are allowed deduction..
yes penalty
surbhi malik
(ca)
(28 Points)
Replied 19 September 2012
But the same amount of salary paid to Director without deduction of TDS amount will not be allowed as a deduction while calculating the Business income. Because as per provisions of TDS if
TDS has not been dected on any paymnet made during the year, on which TDS deduction was required as per Chapter XVIIB, event if it has been deposited before filing of return,
and also TDS was not deposited within the time period mentioned as per TDS provisions or before the due date of filing of return.
The same amount of expense can not be allowed as a deduction.
Jairam J
(CA, B.COM(Hons.))
(382 Points)
Replied 19 September 2012
No surbhi..there is no expense disallowance on account of non-deduction of tds in respect of salary like payments covered under 192..
Disallowance Sec 40(a)(ia) excludes payments in the nature of salary...
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