Disallow u/s 40(a)(ia)

whether a expenditure is disallowed u/s 40(a)(ia) is also disallowed u/s 43b due to non payment of tds.
Replies (2)
When TDS is not deducted on any amount , then only 40(a)(ia) will be invoked, and 43B talks about indirect tax only, how 43B can be invoked in case of tds.

1. Sec 40(a)(ia) disallows 30% of your expenses which are subject to deduction of tax and for which tax was not deducted or paid within due date for filing the ROI. 
2. Whereas sec 43B talks about the allowability of expenses on actual payment basis. 
3. If your expenses which are covered u/s 43B, then the whole amount will be disallowed since it is allowed based on actual payment basis. Once the payment for the same is made, it will be allowed as deductions as per sec 43B, then comes sec 40(a)(ia). If for such expenses TDS is not deducted then 30% of such expenses will be disallowed until TDS on such amount is deducted and paid. 
Please correct me if the above solution has an alternative view. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 06 August 2026
Junior Accounting Associate

Prish Consultancy LLP

New Delhi

B.Com

View Details
Company
19 August 2026
Chartered Accountant - Financial Consolidation & Reporting

Synergy Keystone

Mumbai

CA

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
11 August 2026
COMPLIANCE EXECUTIVE

YMW COMPLIANCE SERVICES LLP

Others

CA Final

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 08 August 2026
Article Assistant

Sanath Sheshagiri & Co.

Bengaluru

CA Inter

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details