Form 3cd- difference bet clause 17(f) & 27

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SUNILKUMAR WADHWANI

SUNILKUMAR WADHWANI (Querist)
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21 August 2013 Hiii,

Can anyone tell me what is the difference Difference bet Clause 17(f) & 27???

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 August 2013 The scope of clause 17(f) is restricted to
the payments covered by Section 40(a) only.
The payments outside India or in India to non residents are covered U/s 40(a)
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Whereas Clause 27 is having wider scope and covers clause 17(f) items as well as other
transactions liable to TDS entered mainly with persons within India.
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So you can say that Clause 17(f) is a "subset" of clause 27 assuming that these clauses are 2 sets.
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SUNILKUMAR WADHWANI

SUNILKUMAR WADHWANI (Querist)
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21 August 2013 But sir Sec 40(a) covers both Resident & Non-Resident...................

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 August 2013 You are right sir, Thanks for correcting my reply which was based on merely sub-clause(i) of clause (a) of Section 40.
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There is certainly duplication of work upto some extent but 17(f) covers only the cases where the expenditure is inadmissible.

Whereas, Clause 27 covers reporting of allowables as well as disallowables. You may verify that non deduction of TDS on salary is not required to be reported in 17(f), where as the same is required to be reported in Clause 27.
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Further, after insertion of second proviso to Section 40(a)(ia) w.e.f. 1-4-2013, it may happen that against clause 17(f) "NIL" may be reported even in a non-deduction case, still the reporting of non deduction of TDS is required and it can be fulfilled through Clause 27.
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Lastly, our law makers do not treat the tax-payers and tax-consultants in a fair manner. They have to follow as they are told to do. We are filing the faulty ITRs since AY 2007-08. What was bad in "Saral" and what is better in ITR-1 "Sahaj" ? The discussion will not lead to any change unless a united effort enforces it. Upload the signed -scanned- and then digitally signed return ....do not try to understand the logic, when we can not commit ourselves to enforce a change.
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