SAI KRISHNA GHANTASALA (JOB) (202 Points)
21 July 2009hi all
if a company makes any payment to a professional of Rs.25000/- in cash without deducting any TDS U/s 194J then under which section do the said payment is disallowed ?
Can a payment be disallowed under two sections ?
if the case is only the deduction under any one of the section then which will be the more beneficial one for the assessee and why ?
KRISHNA
Ritesh
(CA Final)
(326 Points)
Replied 21 July 2009
Mr. Sai Krishna
Expenditure would get disallowed u/s 40(a)(ia).
CA Hardik
(Profession)
(92 Points)
Replied 25 July 2009
Friend
Expenditure can be disallowed u/s 40 (a)(ia) as well as u/s 40A(3),since amount is paid in cash is above Rs.20,000
It is more benefial to disallow the expense U/s 40 (a)(ia),Since it can be allowed in the year in which TDS is deposited
By showing that the payment was made on a bank holiday one can escape from Sec 40A(3).
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