40(a)

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Guest

Guest (Querist)

24 March 2009 Form 3CD specifically ask for reporting for disallowance u/s 40(a)....
Is interest on TDS/FBT/Income Tax gets covered u/s 40(a) and do we need to report the same?

ICSI ICAI ICWAI

ICSI ICAI ICWAI (Expert)
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24 March 2009 yes I think so

Omkar

jatin kapoor

jatin kapoor (Expert)
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24 March 2009 YES I TOO THINKSO

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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24 March 2009 No.
They are disallowed u/s 37.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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24 March 2009 disallowances u/s 40(a)

a. Interest, royalty, fees for technical services payable to a non-resident or outside India [Sec.40(a)(i)]: b) Interest, commission or brokerage, etc. payable to a resident in India [Sec. 40(a)(ia)]: Any amount payable -
on which tax is deductible at source under Chapter XVIIB; and
such tax -
• has not been deducted; or
• after deduction, has not been paid before the expiry of the time prescribed u/s 200 (1)
c) Security transaction tax [Sec.40(a)(ib)]: Any sum paid on account of securities transaction tax.
d) Fringe benefit tax [Sec.40(a)(ic)]: Any sum paid on account of fringe benefit tax.
e) Income tax [Sec. 40(a)(ii)];
Even, income tax paid by the assessee on income of predecessor is not deductible.
Stress: Professional tax is allowed expenditure [Circular No. 16 & 18 dated 18/9/69]
f) Wealth-tax [Sec. 40(a)(iia)];
Any payment which is chargeable under the head "Salaries", if it is payable—
(i) outside India; or
(ii) to a non-resident,
and if the tax has not been paid in India thereon nor deducted therefrom [Sec. 40(a)(iii)]
g) Any payment to a provident fund or any other fund established for the benefit of employees of the assessee in respect of whom the assessee has not made effective arrangement to secure that tax shall be deducted at source from any payment made from the fund, which are taxable under the head ‘Salaries’ [Sec. 40(a)(iv)]; and
Any tax on non-monetary perquisite [which is exempt in