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Disallowance undersection 40a(3)

HEMANTH RANKA (Tax & Financial Consultants) (360 Points)

17 August 2016

Will payments in excess of Rs.20000.00 be disallowed even where the assessee discloses his income under sec 44AD.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 17 August 2016

Practically not, as books of accounts not provided by the assessee. But under cross verification inquiry may arise, which may be little tedious job; even though no disallowance as per law, but better to avoid such situations.

HEMANTH RANKA (Tax & Financial Consultants) (360 Points)
Replied 17 August 2016

Thank you fo your reply sir.

ACA Anurag (Enjoy the little things) (14706 Points)
Replied 17 August 2016

Dear Hemanth,

It would not be disallowed as 44AD is deemed income provison where only 8 % income is required .and its very rare case when a return filed under 44AD is slected for scruitny .

But it would be advised to avoid such transaction .

Hope your query has been answered .

Originally posted by : Hemanth Ranka

Will payments in excess of Rs.20000.00 be disallowed even where the assessee discloses his income under sec 44AD.

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