Disallowance u/s. 40(a)(ia)

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Paras (Querist)
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23 February 2010 For disallowance u/s. 40(a)(ia) - late payment of TDS, is it necessary that firstly exp should be debited to P&L?

Waht about those payments which are shown in financials as Prepaid or capital nature??

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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23 February 2010 its not necessary that expenses should be debited in P & L A/c.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 February 2010 My view,Expenses claimed under the head Profits and gains of business or profession only covered under TDS default in respect of Sec.40(a)(ia)

CA Amit Joshi

CA Amit Joshi (Expert)
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24 February 2010 Agree with Gurdeep singh.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 February 2010 The question of disallowance under section 40(a)(ia) arises only when the expenditure is considered by the assessee in calculating the income under the head PGBP. In other words if the expenses are not debited in the p & l A/c, disallowance u/s 40 (a) (ia) does not arise.
Consequently prepaid/capital expenditure are outside the purview of the said section.

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