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Applicability of Sec.14A

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Nimish

Practice

32 Points Posted on 14 December 2009

I want to know about the Section 14A.

If there is a joint account with relative and some investment is made from that account (source of income is fully through Joint account holder and redumption of old investments which was made out of the income of joint account holder) then any amount of that investment will be added to the total income of the assessee?

There is any question for disallowability?

Replies (2)

CA. MOBIN SAYYED

Sr. Team Leader

114 Points Posted on 14 December 2009

yes. 0.005% of avg investment {(opng +clsg)/2}should be disallowed.

Nimish

Practice

32 Points Posted on 15 December 2009

If the assessee has interest or dividend income other than the joint account investment and all the divident income of that joint account investment was taken under the total income of the investor than it makes any effect in the computation of total income of the assessee?

Suppose there is a 3 account holder, A B & C and all the investment was made from the income of A, than for calculation of total income of B, Is any income has to be added? ( B has not invested any amount and just a joint account holder only ).

If Op. & Cl. Balance of an investment is Rs.5,00,000/- and Rs.8,00,000/- respectively and total dividend earned during the year is Rs.30,000/- ( Which was taken as an income of A ), than what is the disallowability in the case of B and C?