INTEREST ON TDS

[Guest]

IS INTEREST ON TDS ALLOWABLE EXPENDITURE OR NOT? IF NOT THEN UNDER WHICH SECTION? 

[Ganeshan Kalyani]

Sir, interest is not business expense. It is accounted in Rent, rates and taxes which forms part of current liabilities in B/S. In my view no. Thanks.

[Ganeshan Kalyani]

Sorry I posted wrong salutation. Please consider as Ms in place of Sir. Thanks.

AI Summary

Interest on TDS not allowable as business expense; treated under rent, rates and taxes as current liability. Interest on tax deducted at source is not treated as a business expense and is recorded under Rent, Rates and Taxes, reflected among current liabilities in the balance sheet; this accounting classification is relied on to deny its allowability as a business expenditure.