Payments to Residents on which TDS not deducted

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

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

Q 2

The due date of ITR is 31 July