Tax audit query
This query is : Resolved
24 May 2012
Where any amount withrawn from the special account is not utilised for the specified purposes within the same year or is misutilised as per section 33AB of income tax act, 1961. If so, report the amount of such deemed profits under clause 19 of Form No.3CD.
Why report under clause19? there is no deeming provision. if misutilised then it will be taxable so much amount misutilised. when there is a specified amount then why clause 19 reporting?
Thanks
Why report under clause19? there is no deeming provision. if misutilised then it will be taxable so much amount misutilised. when there is a specified amount then why clause 19 reporting?
Thanks
shashikumar
(Expert)
24 May 2012
Dear Riddhi,
As we know 33AB denotes Tea , Coffee and Rubber development account and for claiming deduction under respective sections entity as to deposit fixed % of profits to special account fixed by respective sections.
As per 33AB deposited amount should not for any purpose than which is mentioned in section and default in usage of amount results in violation of 33AB and amount of wrong usage will be taxed under section 41 of income tax.
Hence in 3CD report we need to report as clause 19 specifically requires it.
As we know 33AB denotes Tea , Coffee and Rubber development account and for claiming deduction under respective sections entity as to deposit fixed % of profits to special account fixed by respective sections.
As per 33AB deposited amount should not for any purpose than which is mentioned in section and default in usage of amount results in violation of 33AB and amount of wrong usage will be taxed under section 41 of income tax.
Hence in 3CD report we need to report as clause 19 specifically requires it.
shashikumar
(Expert)
24 May 2012
Dear Riddhi,
As we know 33AB denotes Tea , Coffee and Rubber development account and for claiming deduction under respective sections entity as to deposit fixed % of profits to special account fixed by respective sections.
As per 33AB deposited amount should not for any purpose than which is mentioned in section and default in usage of amount results in violation of 33AB and amount of wrong usage will be taxed under section 41 of income tax.
Hence in 3CD report we need to report as clause 19 specifically requires it.
As we know 33AB denotes Tea , Coffee and Rubber development account and for claiming deduction under respective sections entity as to deposit fixed % of profits to special account fixed by respective sections.
As per 33AB deposited amount should not for any purpose than which is mentioned in section and default in usage of amount results in violation of 33AB and amount of wrong usage will be taxed under section 41 of income tax.
Hence in 3CD report we need to report as clause 19 specifically requires it.
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