Sheena Maheshwari (ARTICLESHIP) (240 Points)
09 February 2012
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
Suraj S
(Audit Executive)
(335 Points)
Replied 10 February 2012
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
CAclubindia
