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Regarding taxable business income

Naveen B (Student) (49 Points)

10 June 2015

what is treatment regarding computing taxable business income of a company : 1. Cash payment made in d form of cash rs.50000 2. We should show TDS while computing tax liability of a company ?

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vineet kumar (Student CA IPC / IPCC) (85 Points)
Replied 11 June 2015

Dear, Naveen,

1. Under Sec. 40 A(3)Of Income tax Act 1961. Where any expenditure in respect of which payment is made in excess of Rs. 20,000 at a time otherwise than by Account-payee cheque or draft, 100% of such payment shall be disallowed.

So, cash payment made of rs. 50,000 is not allowed as expenses .

2. yes, we have to deduct amount of TDS from total tax liability, and balance will be paid or refundable

Thanks and regards

Mr. Vineet Kumar

Cont.- 7770010353

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