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Section 40(b)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2010 We have disallowed certain item in any earlier previous year on the ground of non deduction of tds and allowed it in current P.Y. as tds was paid now. While calculating remuneration to partner under section 40(b) do we have to add the said amount of allowance to profit shown in the profit and loss account for the calculation of book profits for the current P.Y.?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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27 September 2010 It is not clear from your querry , whether the TDS was taken in books as liability or not. If it was , than where is the question of recalculate the profit for remuneration.

I think TDS was pending for payment only.

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2010 Actually provision was not made in that year for payment of tds, hence it was disallowed. But since the tds was paid in the current year, we have allowed the expenditure in current year P.Y.
Well I was asking whether the amount allowed this year shall have any impact on the book profit of the firm?
Thanks anyways...

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