Menu
Related party disclosure under section 40a(2)(b)
Dear all,
under Section 40A(2)(b) disclosure has to be made for the payments made to related parties.Whether sale of any goods or services (i.e. payment received from any related parties) is to be disclosed under the same section?
Kindly reply asap
Replies (1)
Section 40A(2) of Income Tax Act deals with disallowance of payments made to relatives if the following conditions are satisfied:
- Expenditure is incurred for goods, services or facilities
- For the above expenditure, payment is made (or to be made) to relatives or persons having substantial interest
- Such expenditure is considered as excessive or unreasonable considering:
- Fair market value
- Legitimate business needs
- Benefits to the assessee.
If the above conditions are satisfied, to the extent the payment is excessive, it shall be disallowed.
Recent Threads
- Revised Income tax return karna padega kya
- Registration as deductor on traces site
- Rental Income from a Joint Holding property
- Itr 4 return filing question
- Whether GST applicable on Hardship Compensation pa
- ITC cannot be denied to Bona Fide Buyers for Suppl
- Unused ITC for Hotel after GST Change
- CA FINAL SPOM
- 44ad presumption of tax
- Friendly loan to blood relative?
Related Threads
CAclubindia
