Sec.14A

Dear Urvi,

Sec 14 A was Inserted by the Finance Act, 2001, w.r.e.f. 1-4-1962.

It was inserted wef 01.04.1962.

Rule 8D came from AY 2009-10 wef 24-03-2008, which showed how to compute the disallowance as

0.5% of avg value of investment from which tax free income is earned +

all expenses directly related to exempt income+

interest, in the proportion borne by the avg value of investment which gives exempt incomes, to the avg total assets