If the turnover from business of an individual assessee does not exceed 60 lakhs
And he has made payments u/s 40a(i) /40a(ia) such as interest without deducting tax at source
Then does any disallowance arise in respect of these payments?
My View: no as the assessee will opt for presumptive taxation. So all adjustments are deemed to have been made.
pls help n tell me if i am correct
Your ans is correct. But the reason is wrong. Its because only an assessee whose turnover exceeds Rs. 60 lakhs, i.e., only for whom tax Audit u/s 44AB is applicable is under the obligation to deduct TDS from the payments he makes. So as such in ur case disallowance should not be made.
Regards,
Suraj
The view of Sheena is also correct because in case of presumptive taxation all the allowances & disallowances from income are deemed to be made.
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