18 September 2014
in one of our company, all the income are exempted income and no interest expenses. so the dis-allowance u/s 14A will be 0.5% of average investments. but the problem is dis-allowance is of Rs. 1,00,000/-. but total expenses in the books are Rs. 30,0000/-. how can be dis-allowance more than actual expenses incurred? please guide me in the matter
18 September 2014
see if this case helps you http://taxguru.in/income-tax-case-laws/section-14a-rule-8d-disallowance-interest-income-exceeds-expenditure.html
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