28 August 2023
One of our client paid rent of RS.25000 per month ( Total rent paid in a year : 300000) by cash mode to single party during year. Here this rent expenditure is disallowed under section 40(a)(3) as he paid rent of 25000 to single party which exceeds the limit of 10000. In addition this rent expenditure also disallowed @ 30% in section 40(a)(1a) as TDS not deducted on rent payment. So what is the total amount of disallowance. A) 300000 B) 390000 C) 90000 D) 0 Please give your answer to above question. Thank you.
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