DEDUCTIBILITY OF EXPENDITURE WHERE TDS HAS NOT BEEN DEDUCTED

DEDUCTIBILITY OF EXPENDITURE WHERE TDS HAS NOT BEEN DEDUCTED

Section 40(a)(i)

Interest, Royalty, FTS, etc Payable Outside India/Payable to Non-Resident Applicability of Section- 40(a)(i) - Conditions

                   The amount is paid/payable:

          to any person outside India; or

          to a non-resident in India or a foreign company in India.

                   The amount paid is in the nature of interest, royalty, fees for technical services or any other sum.

                   Such amount is chargeable to income tax in the hands of the recipient under the Income Tax Act, 1961 and TDS is required to be deducted u/s 195 or any other section.


When Disallowance is Applicable

Interest, royalty, etc would be disallowed in the following two cases:

                   Case 1: Tax has not been deducted at source in the current year; or


                   Case 2: Tax has been deducted at source during the current year but has not been deposited with the government till the last date of submission of return u/s 139(1).


Amount of Disallowance

The entire amount of interest, royalty, fees for technical services shall be disallowed in the current year if either of the above two cases gets attracted.


Reversal of Disallowance

The  amount  which  is  disallowed  in the current year shall be allowed as deduction in the year in which tax deducted at source is deposited with the government by the pave,.

Demo Classes of Tax by Prof. Vinit Sir: https://www.conceptonlineclasses.com/demovideos


Visit Website: https://www.conceptonlineclasses.com/

#DEDUCTIBILITYOFEXPENDITUREWHERETDSHASNOTBEENDEDUCTED

Latest Blogs

Why to choose career in "CMA" ?

The Reasons to Choose a Career in "CMA"


What Is Balance ScoreCard

What Is Balance ScoreCard A balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. Balanced scorecards are used to measure and provide feedback to organizations. #BalanceScoreCard





Top Reviews

Introduction to Statistics for CA Foundation

Introduction to Statistics for CA Foundation Business Mathematics, Logical Reasoning and Statistics is designed as per latest CA Foundation syllabus for Paper 3 to provide a firm grounding in the principles, techniques and practice. The book adopts self-study approach and has been written in student-friendly manner. With a blend of conceptual learning and problem-solving approach, it offers in-depth understanding of the basic mathematical and statistical tools. #introductiontostatistics


Chapter X of Companies Act 2013

Chapter X of Companies Act 2013 The company shall place the matter relating to such appointment for ratification by members at every annual general meeting. ... Under the Act, the provisions for rotation of auditors in the listed Company & certain other class of Companies, have been provided for. #chapterxofcompaniesact2013


Relevant sections under the Companies Act, 2013 dealing with fraud and false statements

Relevant sections under the Companies Act, 2013 dealing with fraud and false statements The new parent corporate law “The Companies Act 2013” is mostly ... I am limiting my write-up to the provisions to the Act, and I request the readers to refer relevant rules, if any, before ... in the 2013 Act is the Section 447 dealing with “Punishment for fraud”. ... Section 448


What is Corporate Image

What is Corporate Image A corporate identity or corporate image is the manner in which a corporation, firm or business enterprise presents itself to the public. The corporate identity is typically visualized by branding and with the use of trademarks, but it can also include things like product design, advertising, public relations etc #WhatisCorporateImage


What is Energy Audit

What is Energy Audit An energy audit is an inspection survey and an analysis of energy flows for energy conservation in a building. It may include a process or system to reduce the amount of energy input into the system without negatively affecting the output. #whatisenergyaudit