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Disallowance in case of short deduction


Kamaldeep Singh

2014-11-10

Hi,

Pls guide.A deductor deducts short tds on a payment and deposits it say rent paid 50000 and tds deducted only 2500/- and deposited. Now is the whole 50000 is disallowed under income tax assessment or only 25000 is disallowed as he deducted tds on 50% of the payment made.

Thanks.

Ganesh babu k

2014-11-10

Total amount on which tds applicable 50000

tds applicable @194I10% is

assuming that tds deducted only on 25000 and deducted and paid rs.2500

amount on which tds not deducted 25000

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this needs to be disallowed as per section 40(a)(ia) and the same can be reported.

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Make sure the clause 34(a) and Clause 21(b)(ii)(A) should agree each other

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CA Pulkit Sharma

2014-11-12

Ganesh Babu is right you need to disallow only the amount on which TDS is not deducted.

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Kamaldeep Singh

2014-11-23

Thanks for the kind guidance guys!

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