Income Tax - As per the provision of Section 40(a)(ia) of the Income Tax Act, 1961, any amount payable to any Indian resident person tax is to be deducted under chapter XVII-B. If tax has not been deducted or after deducting tax, has not been deposited before submission of return of Income u/s 139(9) of the Act, 30% […]...
Read MoreIncome Tax - Any person being Individual/HUF/Company/Firm/LLP etc. providing any benefit or perquisite whether convertible into money or not, is liable w.e.f. 1-7-2022 to deduct TDS U/s 194R @ 10% on the value or aggregate value of such benefit or perquisite....
Read MoreIncome Tax - The issue under consideration in this write up is whether disallowance u/s 40(a)(ia), 40A & 43B of Income Tax Act, 1961 are attracted in case of an eligible assessee declaring income under presumptive taxation scheme contained in section 44AD, 44ADA & 44AE. Section 44AD, 44ADA & 44AE starts with a non-obstante clause reading a...
Read MoreIncome Tax - INCOME TAX QUESTIONS & ANSWERS SERIES PART -IV – Sub: Section 28(va) and Section 40(a)(ia) of the Income Tax Act, 1961; Today we are going to consider two problems based on provisions of Sections 28(va) and Section 40(a)(ia) of the Income Tax Act, 1961 respectively. PROBLEM :- A Ltd., transfers a building worth of Rs. […]...
Read MoreIncome Tax - Analysis of Section 40(a)(i)- Non-compliance of Provisions of TDS where payment is made to Non Resident If any interest, royalty, fees for technical services or other sum chargeable under this Act, which is payable,— (A) Outside India; or (B) In India to a non-resident, not being a company or to a foreign company, On which […]...
Read MoreIncome 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 MoreIncome 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 MoreSunsmart Technologies Pvt. Ltd Vs ACIT (ITAT Chennai) - Sunsmart Technologies Pvt. Ltd Vs ACIT (ITAT Chennai) As per Explanation-2 to Sec.9(1)(vii) of the Act, FTS means any consideration (including in lump sum consideration) for the rendering of any managerial, technical or consultancy services, but does not include consideration for any construction, a...
Read MoreDCIT Vs 3i Infotech Consultancy Services Limited (ITAT Mumbai) - DCIT Vs 3i Infotech Consultancy Services Limited (ITAT Mumbai) ITAT held that factoring charges incurred by the assessee company is not in the nature of interest and that the assessee was not under the obligation to deduct TDS as per the provisions of section 40(a)(ia) of the I.T. Act. For this, we ...
Read MoreRam Garhia Co-operative Bank Ltd Vs ACIT (ITAT Delhi) - ITAT Delhi held that there is no liability to deduct TDS on interest on savings bank account and interest of compulsory deposit account as per the provisions contained u/s 194A of the Act. Accordingly, disallowance u/s 40(a)(ia) unsustainable....
Read MoreParas Nath Singh Vs ACIT (ITAT Patna) - Paras Nath Singh Vs ACIT (ITAT Patna) Main grievance of the assessee is disallowance u/s 40(a)(ia) amounting to Rs. 25,74,023/- being the expenditure incurred in respect of freight and carriage. On this specific issue from the perusal of assessment order passed by the AO and it was come to our notic...
Read MoreShri Gopinathan Vs The ITO (ITAT Chennai) - Shri Gopinathan Vs ITO (ITAT Chennai) It is not the case of the Department that the Assessing Officer has omitted to consider the claim of expenses and thereby passed the rectification order under section 154 of the Act. In this case assessment was reopened under section 147 of the Act and during th...
Read MoreCircular 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 MoreInstruction 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 ...
Read MoreCircular 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 MoreSunsmart Technologies Pvt. Ltd Vs ACIT (ITAT Chennai) -
DCIT Vs 3i Infotech Consultancy Services Limited (ITAT Mumbai) -
Ram Garhia Co-operative Bank Ltd Vs ACIT (ITAT Delhi) -
Paras Nath Singh Vs ACIT (ITAT Patna) -
Shri Gopinathan Vs The ITO (ITAT Chennai) -
ACIT Vs Manish Raichand Shah (ITAT Ahmedabad) -
DCIT Vs Sareen Sports Industries (ITAT Delhi) -
PCIT Vs Linde India Limited (Calcutta High Court) -
Mandheshwari Urban Development Co-op. Bank Ltd. Vs ACIT (ITAT Pune) -