Any Amount Payable

To Residents

On which Tds was deductible

But TDS Not deducted

      Or

TDS deducted but not deposited within due date of ITR  (31 July/30 September)

In such a case,30% of the amount will be disallowed

(Earlier whole 100% was disallowed)

Examples of Such Expenses are Interest, Royalty, Fees for Technical Services etc

 

CBDT Circular 10/2013

Note:-Although the Section mentions that this Section is Applicable on “Any Amount payable”.as per CBDT Circular,it is “Any amount paid or payable”

Hence this section applicable to those cases also when amount has been actually paid to assesse and not only those when amount is payable.

Deduction Allowed in Next Year

When TDS actually deducted and deposited in next year (after ITR Due date)

Or

When TDS deducted in previous year but deposited in next year

Then

That 30% which was earlier disallowed will be allowed in that next year when actually deposited

QUESTIONS

Q 1

Particulars Amount
SALES 6000000
Less  
EXPENSES 4000000
PROFIT 2000000

Suppose  1500000 expenses were paid in India to residents on which TDS was deductible but not deducted

View Answer

Q 2

Particulars Year 1 Year 2
SALES 6000000 7000000
Less    
EXPENSES 4000000 4500000
PROFIT 2000000 2500000
     
Suppose expenses include following payment to Residents
Expenses on which TDS deducted but deposited late on 21 July 20000 25000
Expenses on which TDS deducted but deposited late on 14 Aug 30000 35000
     

The due date of ITR is 31 July

View Answer
  1. Practical Income Tax
  2. Income Tax for Audit Cases (Non Co)
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .