The payer of income does tax deduction as per the law in force when she makes remittance. The Indian legislature has powers to make retrospective amendment to the statutes. Similarly, a judicial decision, which is always retrospective, may reverses a settled position on taxability of income in the hands of payee. A question arises as […]
40(a)(ia) DISALLOWANCE IN CASE OF REIMBURSEMENT OF EXPENSES
Section 40(a)(ia) of the Income-tax Act, 1961 provides for disallowance of 30% of any sum payable to a resident on which tax is deductible at source under Chapter XVII-B, where such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in section 139(1). Till assessment […]
PROPORTIONATE DISALLOWANCE UNDER SECTION 40(a)(ia) FOR SHORT DEDUCTION/PAYMENT OF TDS
Section 40(a)(ia) of the Income-tax Act, 1961 provides for disallowance of 30% of any sum payable to a resident on which tax is deductible at source under Chapter XVII-B, where such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in section 139(1). Till assessment […]
CIT V CALCUTTA EXPORT COMPANY 404 ITR 654 (SC) – ANALYSIS AND FINDINGS
Facts of the case The taxpayer had made payment towards export commission and deduct TDS on same. However, TDS was remitted on 1.8.2005. Since the TDS was deposited post 31.3.2005, the AO disallowed the commission applying the provisions of section 40(a)(ia). The CIT(A), ITAT and HC held in favour of the taxpayer. Revenue filed the […]