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

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....larification - S.40a(ia)- 'any subsequent year'<br> Query (Issue) Started By: - DEV KUMAR KOTHARI Dated:- 16-1-2010 Last Reply Date:- 22-1-2010 Income Tax<br>Got 1 Reply<br>Income Tax<br>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 bee....

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....n 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....

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.... 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 expressio....

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....n 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. Reply By ASHWIN GALA: The Reply: I DON'T THINK THERE IS ANY SCOPE OF LITIGATION. THE PHRASES 'ANY SUBSEQUENT YEAR' & 'YEAR IN WICH SUCH TAX HAS BEEN PAID' ARE VERY CLEAR.<br> Discussion Forum - Knowledge Sharing ....