09 September 2011
1. Can Income Tax Officer disallow all payable payments on the grounds of non deduction tax at source? In this circumstances what panalty he will impose and under which clause of Income Tax.
09 September 2011
Yes As per section 40A(i)(a) income tax officer can disallow all the payment of expenses on which tds was required to deduct and not deducted by assessee.
No penalty shall be impose on the same.Non allowability of expenditure to the extent of TDS not deducted will be offered for tax. and such tax will be subject to interest and penalty payment as per normal terms.
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