Please advice on following:
Company ABC deducted TDS @ 10% (Rs. 10,000/-) on Rs. 100,000/- and made payment of Rs. 90,000/- to Mrs. Y (Mrs. Y is wife of one of the director of ABC) towards professional fees rendered by Mrs. Y to ABC.
Here, ABC didn’t deposited TDS into government treasury and hence not issued TDS certificate to Mrs. Y. So, without waiting for TDS certificate, Mrs. Y filed her income tax return before due date showing income of Rs. 90,000/- in return.
Now, my query is whether ABC can write-off Rs. 10,000/- in books instead of paying into government treasury, since Mrs. Y has already filed her return of income. Kindly guide me.
CAclubindia
