It’s time to check in all expense items for TDS applicability

TaxReco Shorts

May 31, 2023 is the last date to file Income Tax Return for Quarter 4 FY 2022-23 and companies need to ensure that they don’t miss deducting TDS on any expense line item. 

If deducting TDS on expense line item is missed then same has to be deposited with penalty.
As per Clause 34(a) of Income Tax Act, Tax Auditor need to verify the TDS/TCS deposited by companies on all expense items booked in P&L and if any line item is identified where TDS should have been deducted and not deducted then it has to be deposited with penalty.

It’s a cumbersome task for companies to manage large volume of expense data and reconcile every expense item manually to present it to auditors. 

How are you managing this annual activity to generate Form 3CD as per clause 34(a) of IT Act? Are you able to manage it with excel sheets or using some macros or a technology solution?

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