disallowance u/s 40

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2010 IAM PARTNER IN FIRM , PAID SALARY TO THREE LADIES EMPLOYEE RS. 276000 EACH IN A.Y. 2009-10, NO TDS IS DEDUCTED TILL DATE ,HOW MUCH AMOUNT SHALL BE DISALLOWED U/S 40A) , PLEASE GIVE ANY JUDGEMENT REFERENCE

Bimal Thacker

Bimal Thacker (Expert)
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14 December 2010 Section 40(a) is for disallowance of expenses on which TDS not deducted. However section 40(a) does not cover disallowance for non deduction of Tax on salary, so there will not be disallowance in your case.
However section 40A(2)(b)if payment is to related party and paid unreasonable or excessive then assessing officer may disallowed the excessive amount