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Rent Exps disallowance U/s 40b

This query is : Resolved 

31 May 2011
Will the whole exps including Service Tax will be disallowed if No TDS is deducted on rent or only rent amt will be disallowed???

31 May 2011 The wordings used in section 40(a)(ia) ( not 40b) is '.... on which tax is deductible under chapter XVII-B'. The said chapter r.a.w circular 4/2008 dated 28/4/2008 is concerned with the rent element only, therefore section 40(a)(ia) can't go beyond that meaning thereby disallowance is warranted only for the rent element.


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