Interest on TDS, Income Tax

[CA Rachit Agarwal]

Whether interest paid on delayed payment of TDS is deductible expenditure? Is there any case law.

Various opinion has come: 

1. As income tax is not deductible and TDS being income tax, hence interest on TDS also not deductible

2. As TDS is linked to the deductible expenditure, hence interest on TDS also deductible.

Request you to give a proper opinion.

Posts / Replies

[GOPALJI AGRAWAL]

Interest paid under any provisions of income tax is not allowable expenditures as held by various high courts as well as Supreme Court. See Bharat Commerce & Industries Limited Vs. CIT[1998] 230ITR733