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Query on sec 40(ba) of income tax act 1961

Tax queries 2266 views 2 replies

If an AOP / BOI which is registered under Society's Registration Act,(i.e School registered under Society's Registration Act,and PAN is Issued in the Name of AOP)  and paying salaries to its members (i.e teachers there) , is it required to be disallowed as per Sec 40(ba).

Replies (2)

if teacher are members of the AOP then expenses will be disallowed under section 40(ba)

S.40(ba) does not permit deduction in the hands of AOP of any interest, salary, bonus, commission or remuneration paid to member of AOP.

 

regards

prem

9884343669

Dear Sir , But as Sec 40(ba) the Provisions are as follows

in the case of an association of persons or body of individuals [other than a company or a co-operative society or a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India], any payment of interest, salary, bonus, commission or remuneration, by whatever name called, made by such association or body to a member of such association or body.

So Here society registered under the Societies Registration Act, 1860 has been excluded . So that i am asking is dis allowance is attracted if school is registered as Society and PAN issued in the status Of AOP.


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