Regarding taxable business income

Dear, Naveen,

1.   Under Sec. 40 A(3)Of Income tax Act 1961. Where any expenditure in respect of which payment is made in excess of Rs. 20,000 at a time otherwise than by Account-payee cheque or draft, 100% of such payment shall be disallowed.

So, cash payment made of rs. 50,000 is not allowed as expenses .

2.  yes, we have to deduct amount of  TDS from total  tax liability, and balance will be paid or refundable

Thanks and regards 

Mr. Vineet Kumar

Cont.- 7770010353