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Vivek (Querist)
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01 October 2012 Dear Sir,
In case of an individual assessee whose case is liable to audit.
Payment to a sub-contractor is Rs. 1 lac and thereon said assessee did not deduct tds.
Now please advise me if the case comes in scrutiny, then department will impose penalty equal to tds amount ie Rs. 1000/- or
the whole payment would be disallowed as business expenditure.

If yes then under which section.

Please clarify.

Vivek

Vivek (Querist)
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01 October 2012 Please reply soon

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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01 October 2012 IT WILL B DISALLOWED UNDER SECTION 40(a)(ia)

Vivek

Vivek (Querist)
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01 October 2012 That means Rs. 1 lac would be added to the assessee income and Rs. 1000/- would be levied as penalty for non deduction.

Am I right?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 July 2023

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