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40a (3) vs 40 (a) (ia) - form 3cd disclosure

Tax queries 1027 views 1 replies

CA Final Student

and Trainee Accountant

373 Points Joined October 2008

When a payment more than Rs 20000 is made in cash, and if it is disallowed under Section - 40 A (3) and Section - 40 a (ia) [TDS not deducted].

Then, my query is where to disclose such transaction? under 40 A (3)? or 40 (a) (ia)? or both?

Pl support your answer with any circular/ section/ etc whatever available

Replies (1)

As both are desperate sections you need to mention it under both clauses. Section 40(A)(3) speaks about payment to party incash above 20,000 it does not speak about TDS as payment could be anything it can be advances and can be any payment may not be subject to TDS also. But if TDS is applicable on same transaction and it is not deducted then need to mention under 40(a)(is)