Clarification - S.40a(ia)- 'any subsequent year'

[DEVKUMAR KOTHARI]

Proviso to S.40a(ia)- 'any subsequent year' vis a vis year in which tax is paid- see the likely controversy: Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted— (A) xx (B) xx such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid.] Any subsequent year should normally mean any year which comes afterwards. Particualrly when lateron expression used is 'year in which tax has been paid. Therefore, TDS can be deducted or tax deducted can be paid in any year afterwards, the year in which tax is deposited, related sum shall be allowed. There appears, as of now, no limitation for the period allowed for deposit of TDS. A revenue minded view can be 'any subsequent year' means the year following and no further. However, that does not reason to logic becasue otherwise word used could be subsequent year or following year and then with reference to year of payment also the same expression must be used. However, there is scope of litigation by revenue on this issue, thus a clarification is desirable. Readers are requested to send their views.

AI Summary

Clarifying 'Any Subsequent Year' in Section 40a(ia) of Income Tax Act: Ensuring Clear Tax Deduction Guidelines. A discussion was initiated regarding the interpretation of the term 'any subsequent year' in the context of Section 40a(ia) of the Income Tax Act, concerning the deduction of tax in subsequent years. The original post suggests that 'any subsequent year' implies any year following the deduction, with no apparent limitation on when the tax can be deposited. A potential controversy is highlighted, suggesting the need for clarification to prevent litigation. A response argues that the phrases 'any subsequent year' and 'year in which such tax has been paid' are clear, implying no room for legal disputes.