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Tds disallowance for presumptive taxation

saud ahmed (Student CA IPC / IPCC) (270 Points)

29 October 2019

i have partnerships firm have chosen to file ITR on presumptive basis...
tds provision applicable to firm,so if i dont deduct tds how expenditure will be disallowed in case of presumptive taxation

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6 Replies

Rohit Gala (student) (208 Points)
Replied 29 October 2019

The corresponding amount would be added as additional income and taxed accordingly.

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Priyanshu Shah (29 Points)
Replied 29 October 2019

As per my view it will disallowed because as per sec 44 AD 8% / 6 % is only the mechanism to compute tax liabilities
also support by judgement in case of
ITO vs Mark Construction and CIT vs Surindra pal Anand

saud ahmed (Student CA IPC / IPCC) (270 Points)
Replied 30 October 2019

But disallowance is covered us 40 which is overridden in case of presumptive taxation
so how disallowance can be attracted by the section that has been overridden