Any Amount Payable

To Residents

On which Tds was deductible

But TDS Not deducted


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)


When TDS deducted in previous year but deposited in next year


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


Q 1

Particulars Amount
SALES 6000000
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
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
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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.