section 40(a)(ia)

Amounts not deductible U/s. 40(a) of income Tax Act, 1961

Income Tax - Under the Income tax Act, 1961 Profit or gain from Business or profession is considered income and such income is chargeable to tax. The expenses incurred in relation to business can be deducted from the revenue from Business or profession. However, there is certain restriction on such deduction of expenses....

Read More

Non-Compliance of TDS Provision where Payment is made to a Resident

Income Tax - Section 40(a)(ia) of Income Tax Act, 1961 deals with non compliance of provision of TDS where payment is made to a Resident. 30% cent of any sum payable to a resident on account of interest, commission or brokerage, Rent, Royalty, fees for professional services or, fees fir technical services payable to a resident, or amounts payable to a...

Read More

Disallowance on account of Non-deduction of TDS – Section 40(a)(ia)

Income Tax - The provisions of Section 40(a)(ia) of the Act were brought on Statute by Finance Act 2004, w.e.f. 01.04.2005, i.e the same is applicable for assessment year 2005-06 and subsequent assessment years....

Read More

Consequences for Non Payment or Late Payment of TDS

Income Tax - In Recent past we noticed that department has taken late payment of TDS very seriously and in addition to imposing Interest and Penalty for Late Payment, they also start initiating Criminal Prosecution against those responsible for Deduction and Payment of TDS....

Read More

“Paid” vs “Payable” interpretation- Section 40(a)(i) & Section 40(a)(ia) clarified by Apex Court

Income Tax - There have been substantial debate around the point whether the term ‘payable’ used in section 40(a)(ia) would include amounts outstanding at the end of the year or both amounts outstanding as well as paid during the year....

Read More

Section 40(a)(ia): Disallowance of expenditure for non-deduction of tax at source on payment made to resident

Income Tax - Section 40(a)(ia) is amended via Finance (No. 2) Act, 2014 to restrict the amount of disallowance for non-deduction of tax to 30% of expenditure. The proviso is also amended to the effect that 30% of such sum shall be allowed as a deduction in computing the income of the previous year in which tax has been paid....

Read More

Change in provisions related to disallowance of expenditure on account of non-compliance with TDS provisions : Budget 2010-11

Income Tax - The existing provisions of section 40(a)(ia) of Income-tax Act provide for the disallowance of expenditure like interest, commission, brokerage, professional fees, etc. if tax on such expenditure was not deducted, or after deduction was not paid during the previous year....

Read More

Payment for delayed allotment of plot of land cannot be construed as ‘interest’

Pr. CIT Vs West Bengal Housing Infrastructure Development Corporation Limited (Calcutta High Court) - The issue which falls for decision therefore is whether payment for delayed allotment of a plot of land by the Housing Board to an allottee will fall under the definition of ‘interest’ under section 2 (28A) of the Act....

Read More

Disallowance U/s. 40(a)(ia) for income assessed as Income from other sources

Shri Digamber Jain Bees Panthi Ajmeri Amnay Panchayat Bada Dhada Vs ITO (ITAT Jaipur) - Shri Digamber Jain Bees Panthi Ajmeri Amnay Panchayat Bada Dhada Vs ITO (ITAT Jaipur) When the income of the assessee has been assessed under the head ‘Income from other sources’ and there is no provision U/s 56 to 58 of the Act to make a disallowance U/s 40(a)(ia) of the Act prior to th...

Read More

TDS not deductible on Payment Gateway Charges paid to Banks

Pr. CIT Vs Make My Trip India Pvt. Ltd. (Delhi High Court) - Pr. CIT Vs Make My Trip India Pvt. Ltd. (Delhi High Court) Central Government, by notification dated 31stDecember, 2012 has notified that no TDS shall be made on the following payments to the banks listed in the Second Schedule to the Reserve Bank of India Act: (i) bank guarantee commission; (ii) ca...

Read More

No law barring Partners to draw Remuneration from multiple Firms

Ms. Sachi Sarees Vs ACIT (ITAT Kolkata) - Ms. Sachi Sarees Vs ACIT (ITAT Kolkata) There is no law which prohibits a person to work in more than one partnership firms and draw remuneration therefrom. All that Section 40(b) requires is that the remuneration should be paid to a working partner and there is no prohibition either in the Income-t...

Read More

No TDS U/s. 194J on charges paid to unqualified professional

Nikhil Chandra Mitra Vs ITO (ITAT Kolkata) - Nikhil Chandra Mitra Vs ITO (ITAT Kolkata) Disallowance of Rs.60,000/- made on account of accounting charges by invoking the provisions u/s 40(a)(ia) of the Act.  The assessee submits that the person whom the amount was paid was not a qualified professional and he was an accountant writing the acco...

Read More

Disallowance for failure to withhold tax- Sec.195 rw Sec. 40(a)(i)

Circular No. 3/2015-Income Tax - (12/02/2015) - Circular No. 3/2015 Section 40(a)(i) of the Act stipulates that in computing the income chargeable under the head "Profits or gains of business or profession", any interest, royalty, fees for technical services or other sum chargeable under this Act either payable in India to a non-resident (not bei...

Read More

S. 195 AOs to tax taxable part of sum paid to NR for TDS default

Instruction No. 02/2014 - (26/02/2014) - Sub: Deduction of tax at source under Section 195 read with Sections 201 of the Income-tax Act, 1961 relating to payment made to a non-resident-reg. Section 195 of the Income-tax Act (hereafter referred to as 'the Act') provides that any person, responsible for paying to a non-resident not being a ...

Read More

CBDT circular on Section 40(a)(ia)-TDS Disallowance

Circular No. 10/DV/2013-Income Tax - (16/12/2013) - Circular No. 10/DV/2013-Income Tax It has been brought to the notice of the Board that there are conflicting interpretations by judicial authorities regarding the applicability of the provisions of section 40(a)(ia) of the Income-tax Act,...

Read More

Recent Posts in "section 40(a)(ia)"

Payment for delayed allotment of plot of land cannot be construed as ‘interest’

Pr. CIT Vs West Bengal Housing Infrastructure Development Corporation Limited (Calcutta High Court)

The issue which falls for decision therefore is whether payment for delayed allotment of a plot of land by the Housing Board to an allottee will fall under the definition of ‘interest’ under section 2 (28A) of the Act....

Read More

Disallowance U/s. 40(a)(ia) for income assessed as Income from other sources

Shri Digamber Jain Bees Panthi Ajmeri Amnay Panchayat Bada Dhada Vs ITO (ITAT Jaipur)

Shri Digamber Jain Bees Panthi Ajmeri Amnay Panchayat Bada Dhada Vs ITO (ITAT Jaipur) When the income of the assessee has been assessed under the head ‘Income from other sources’ and there is no provision U/s 56 to 58 of the Act to make a disallowance U/s 40(a)(ia) of the Act prior to the amendment […]...

Read More

TDS not deductible on Payment Gateway Charges paid to Banks

Pr. CIT Vs Make My Trip India Pvt. Ltd. (Delhi High Court)

Pr. CIT Vs Make My Trip India Pvt. Ltd. (Delhi High Court) Central Government, by notification dated 31stDecember, 2012 has notified that no TDS shall be made on the following payments to the banks listed in the Second Schedule to the Reserve Bank of India Act: (i) bank guarantee commission; (ii) cash management service charges; […...

Read More

No law barring Partners to draw Remuneration from multiple Firms

Ms. Sachi Sarees Vs ACIT (ITAT Kolkata)

Ms. Sachi Sarees Vs ACIT (ITAT Kolkata) There is no law which prohibits a person to work in more than one partnership firms and draw remuneration therefrom. All that Section 40(b) requires is that the remuneration should be paid to a working partner and there is no prohibition either in the Income-tax Act, 1961 or […]...

Read More

No TDS U/s. 194J on charges paid to unqualified professional

Nikhil Chandra Mitra Vs ITO (ITAT Kolkata)

Nikhil Chandra Mitra Vs ITO (ITAT Kolkata) Disallowance of Rs.60,000/- made on account of accounting charges by invoking the provisions u/s 40(a)(ia) of the Act.  The assessee submits that the person whom the amount was paid was not a qualified professional and he was an accountant writing the accounts and hence 194J of the Act, [&hellip...

Read More

No disallowance u/s 40(a)(ia) on payment to film distributors u/s 40(a)(ia) if not subject to TDS

ITO Vs M/s. Eylex Films Pvt. Ltd. (ITAT Ahmedabad)

Payment to the film distributors is not subject to TDS and therefore disallowing expense by invoking the provisions of Section 40(a)(ia) is not justified...

Read More

Disallowance U/s 40(a)(ia) cannot be made for shortfall due to difference of opinion as to taxability

DCIT Vs Morgan Stanley (I) Capital (P) Ltd. (ITAT Mumbai)

DCIT Vs Morgan Stanley (I) Capital (P) Ltd. (ITAT Mumbai) Conclusion: Where there was any shortfall due to any difference of opinion as to taxability of any item or nature of payments falling under various TDS provisions, assessee could be declared to be an assessee-in- default under section 201, however, no disallowance could be made [&h...

Read More

Disallowance u/s. 40(a)(ia) are outside the jurisdiction of section 154

Sri Sachin Sharma Vs ACIT (ITAT Ranchi)

Sri Sachin Sharma Vs ACIT (ITAT Ranchi) A perusal of provisions of section 194C of the Act shows that a person is liable to deduct TDS when a contract for work is of an amount more than Rs.30,000/- or where payment for work is made to a person more than Rs.75,000/- during the financial year. […]...

Read More

Provisions of Section 68 Cannot be applied to Sundry Creditor

DCIT Vs Allied Infra suppliers (ITAT Cuttack)

The provisions of section 68 cannot be applied to sundry creditors and the assessee cannot be applied to sundry creditors and the assessee cannot be asked to prove the 3 ingredients of cash credits in respect of sundry creditors....

Read More

Section 40(a)(ia) can’t be invoked in absence of amount claimed as expenditure

CIT Vs M/s Dedicated Healthcare Services (TPA) India Pvt. (Bombay High Court)

Section 40(a)(ia) can be applied only when amount sought to be disallowed has been claimed as an expenditure/deduction. In absence of the amount having been claimed as expenditure while determining the income, dis allowance would not be attracted....

Read More

Browse All Categories

CA, CS, CMA (4,120)
Company Law (4,660)
Custom Duty (7,263)
DGFT (3,917)
Excise Duty (4,191)
Fema / RBI (3,670)
Finance (3,880)
Income Tax (29,659)
SEBI (3,109)
Service Tax (3,446)

Search Posts by Date

May 2019
M T W T F S S
« Apr    
 12345
6789101112
13141516171819
20212223242526
2728293031