Non-compliance of provisions of TDS where payment is made to Resident - (New) Section 35(b)(i) / (Old) Section 40(a)(ia)

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....nt on which TDS is required under Chapter XIX-B: • 30% of that expense will be disallowed (i.e., not allowed as a deduction) • This happens if: • TDS was not deducted, OR • TDS was deducted but not deposited on or before the due date under section 263(1) Exception (A) Relief when TDS is eventually paid If: • TDS is dedu....

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....• Tax is deductible but not deducted  • From  A.Y. 2015-16, 30% of any sum payable to a resident shall be disallowed on which tax is deductible at source under Chapter XVIIB (i.e. Section 192 to Section 206AA)  and such tax has not been deducted or, after such deduction, has not been paid on or before the due date specified in section 139(1). â....

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....t under first proviso to section 201(1) then, for the purpose of section 40(a)(ia), it shall be deemed that assessee has deducted and paid the tax on such sum on the date of furnishing the return of income by the payee. When Recipient has paid tax The amended first proviso to section 201(1) provides as under: • Any person, including the Principal Officer of a company, who f....