Please Help: 40(a)(ia) not allowed to claim 30% benefit
Posted Date : 20-Mar-2020 , 09:13:39 pm | Posted By: R KANDASUBRAMANIAN
Category :
Income Tax | Answers :
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Sir when we file ITR 3 please refer part OI in this part serial no 8 b states amount of disallowance under section 40(a)(ia) which amounts to 30 percent of ten laks say three laks but in tax audit ref form 3CD serialNo 21. Details of amount for which no TDS has been deducted and in this we had shown the details and mentioned total amount Rs ten Laks. But cpc income tax dept saying that the amount shown in OI and tax audit report differs and added the entire amount of rupees ten laks. We have objected this proposal and intend to file rectification under section 154. Pl guide how to proceed sir.
I have filed objections and suppose if cpc rejects the objections shall rectification will be filed under section 154 and whether it is coming under preview of section 154 since it is the question of law. Views will be invited from experts regard this query.
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| Posted By : R KANDASUBRAMANIAN |
12-Apr-2020, 09:15:15 |
| Dear Sir well and thanks for your reply and the amount of Rs 3,00,000 had already been disallowed since no TDS has been deducted for Rs 10,00,000 and further payees are not willing to support and to collect certificates in this regard .Further already disallowed Rs 3,00,000 but CPC even intends to add , it can add only Rs 7,00,000 as Rs 3,00,000 already been disallowed out of RS 10,00,000/- experts opinion is invited |
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| Posted By : Akash Dhanuka |
10-Apr-2020, 10:13:55 |
| Sir , as per my opinion, you can move rectification application against the intimation us 143(1). Reason being its not a mistake of interpretation of law. The Law is very much simple , that while making the payment to the Residents Assessee , if any TDS hadn't be deducted or after deduction not being paid to the credit of central government before the due date us 139(1) , then 30 Percent of related expenditures shall be disallowed.
(I am assuming the 1st proviso to Section 40(a)(ia) not attracted in your case. Further Assessee have to reported In both places one at income tax return and other at tax audit report regarding details of such payment for which Failure of TDS have Been committed.since, at both the places , you have shown the same amount of TDS not deducted ie on 10,00,000, and offers disallowance of 3,00,000 , hence there is no point of debate in such a case. Neither it should be treat as " the question of the law since there is no investigations/ interpretation of law is required.
Only a plain understanding of the law is required . Hence you can move application us 154 as per my opinion. Further , if in the intimation, the amount on which TDs fails to deduct is increased /decreased , then only it is subject matter of investigation., And in such a case the only option left is appeal.
But is in not that case. This Cass will be practically possible when you filled the ROI showing that amount on which TDS not deducted 10,00,000 and accordingly 3,00,000 shown as disallowance. Further , the recipient of the money, is filled the ROI us 139 and offers such income to taxes and get a certificate from chartered accountants regarding this, and you are not aware of this, and hence such a case, your disallowance shall be reduced .
Waiting for other experts to enlighten and guide me. |
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