#Section 14A
Log in to FollowDisallowance under Section 14A of Income TAx Act, 1961
Income Tax
Income Tax
Pre Rule 8D Expenses to earn Exempt Income to be disallowed on reasonable basis
Income Tax
Income Tax
Operation of Rule 8D only from 2008-09 onwards
Income Tax
Income Tax
S.14A does not apply to shares held as stock-in-trade
Income Tax
Income Tax
Sub sections (2) & (3) of S.14A workable only wef date of introduction of Rule 8D
Income Tax
Income Tax
ITAT restricts disallowance u/s 14A for earning exempt dividend to 1% of dividend
Income Tax
Income Tax
Sec.14A & Rule 8D Disallowance Cannot Exceed Total Expenditure
Income Tax
Income Tax
In computing book profit u/s 115JB, S.14A not apply if expense to earn exempt income not debited to P&L account
Income Tax
Income Tax
Expenditure having no nexus with the earning of tax free income can not be disallowed u/s. 14A
Income Tax
Income Tax
In remand, s.14A disallowance cannot exceed original disallowance
Income Tax
Income Tax
Even in a case where no expenditure is incurred, AO has to apply Rule 8D
Income Tax
Income Tax
Even if Rule 8D not applicable, indirect expenses which may be attributable on a reasonably proper basis can be disallowed
Income Tax
Income Tax
Disallowance U/s. 14A as per Rule 8D can not be made for the period prior to 01.04.2008
Income Tax
Income Tax
14A applicable even for the period when Rule 8 was applicable
Income Tax
Income Tax
