TDS not deducted in the P.Y. 16-17 ,but it was deducted and deposited on 31 May 2017.Is the expenditure allowed in the P.Y. 16-17? Pls give answer as per Sec 40(a)(i) of Income Tax Act.
If TDS deducted on 31st march 17 and paid on 31st May 17 (i.e. before the date of filling the IT Return) than expenditure allowed
But If TDS deducted on 31st May 17 and paid on 31st May 17 (i.e. before the date of filling the IT Return) than 30% of the expenditure will be disallowed in FY 16-17 and the same will be allowed in FY 17-18
Note: The above provision is related to deduction of TDS for Resident
no the expenditure will not be allowed in py 16-17. most importantly the relates to non deduction of tds on non residents & such sum shall be allowed in the year in which tds is deducted & paid.