Disallowed as per section 40(a)(ia)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2015 Dear experts,
my client has not deducted TDS on professional service RS. 770000, plz let me know while computation, weather my client need to pay TDS amount along with the 1% interest, however if my client doesn't pay the TDS amount then will it be disallowed as per section 40(A)(IA), also let me know weather only 30% will be disallowed of 77000 or the entire amount of 77000 be disallowed..

thanx & regard
Samir Goyal

CA Mehta Ankur N.

CA Mehta Ankur N. (Expert)
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30 September 2015 Your client have to pay TDS with 1.50% interest, other wise you have to disallow rs. 77000.00 full amount if he do not pay it with interest.

You have one better of option of form 27BA as well.

Have a good day

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2015 Dear sir, please tell me in which case we can issue the form 27BA

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CA Mehta Ankur N.

CA Mehta Ankur N. (Expert)
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30 September 2015 You need ITR and ledger of that professional for the year concerned & if he gives you all details then ca certificate in form no 27 BA can be issued that he has taken this income in his return of income then no disallowance will be required.
Feel free to contact me on M.No.+91 94283 19758

Amol S Joglekar

Amol S Joglekar (Expert)
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30 September 2015 40 (a) (ia) : thirty per cent of any sum payable to a resident, on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in sub-section (1) of section 139

30% of 770,000 shall be disallowed