Disallowance u/s 40(a)(ia)

CA Vibhor Kalamkar (Partner at Bhojwani Kalamkar & Co.)   (186 Points)

28 September 2018  

A is paying rent to B for using his Building for Business purposes. The monthly rent payable is Rs. 5 Lakh. For some reason, A deducts tax of Rs. 40,000/- from the rent payable.

Will the disallowance u/s 40(a)(ia) be attracted in this case on the proportionate amount of Rs. 1,00,000/-?