CONSIDER THE FOLL CASE:
A COMPANY PAID Rs 3 LACS TO ITS DIRECTOR AS REMUNERATION WITHOUT DEDUCTING TDS.
HOWEVER THE DIRECTOR HAD INFORMED THE COMPANY ABOUT HIS ADVANCE TAX CHALLANS OF Rs 15000/- EACH OF SEP, DEC AND MARCH.
THE AO WANTS TO DISALLOW THE EXPENSES OF 3LACS U/S 40(A)(IA)??
WHETHER HE CAN DO SO??
ALSO IS THERE ANY REMEBDY POSSIBLE IN THIS CASE.
ALSO QUOTE ANY CASE LAW IF APPLICABLE.
is it a monthly remuneration or annual?
sec. 40a(ia) does not cover TDS liabilty u/s 192. so the AO cannot disallow the remuneration paid to the director even though the company had not deducted TDS for the remuneration.
S.B.G. & CO. CHARTERED ACCOUNTANTS
New Delhi
CA Inter
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