Taxability of the folllowing items

a) An assessee subject to tax audit has to comply with Sectin 269SS & 269TT which states that it cannot accept or give loans & advances exceeding Rs 20K in Cash. Suppose a co. gives loans of Rs 100000 by cheque . Now whether such co. can accept repayments exceeding Rs 20000 in Cash and whether it is permissible under IT act?

b)In case of short deduction of TDS on Expenses what are the consequences i.e whether such expenses are disallowed or proportionately allowed as expenses?

c)gift received in cash exceeding Rs 50000 from a non relative , whether such an receipt is taxable ?

Replies (2)

 a) THE COMPANY CAN ACCEPT THE CHEQUE OF RS. 100000/-

 

b) IN CASE OF SHORT DEDCUTION THE WHOLE OF THE EXPENSES IS DISALLOWED AS THERE IS NO PROVISION OF PRO-RATA ALLOCATION OF EXPENSE IN CASE OF SHORT DEDUCTION OF TDS.

 

c) YES THE WHOLE OF THE AMOUNT IN THE GIVEN CASE IS TAXABLE.

TDS will be Disallowed Proportionately  only to the extent not deducted.u can refer point 27 of 3CD and also 40a for confirmation of the same

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