Related Party Payments


This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
16 September 2010 I came across a case where the assessee has shown rent expense payable to his mother. this is a related party transaction. However only the relevant journal entries have been passed and no payment has actually been made. Is this transaction reportable u/s 40A(2)(b)?

16 September 2010 Section 40A(2)(b) is applicable in case of expenses debited to the P & L A/c. So in the above case expenses have been debited and hence reportable.

16 September 2010 Yes, assessee debited the Profit & loss a/c it means he are claiming expense, hence it is to be reported under section 40A(2)(b)

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
17 September 2010 Thanks Mr. Aditya and Mr. Bijender


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details