Web23 Jun 2024 · S. 40 (a) (ia): Amounts paid by way of reimbursement of expenses do not constitute income in the hands of the recipient. Consequently, the payer is under no … Web1 Aug 2024 · In the order imposing the penalty, the Assessing Officer noted that the claim of the assessee was unsubstantiated, and had not scrutiny proceedings been invoked against the assessee, the claim would have been allowed illegally and the amount would have escaped income tax altogether.

Section 40A of Income Tax Act for AY 2024-24 – AUBSP

Web30 Dec 2024 · This section of the Income Tax Act gives the assessing income tax officer the authority to deny the claim of certain expenses made to particular people as a deduction if that person feels that the expense is excessive or undervalued in comparison to the fair market value of the goods or services. Web3 Nov 2024 · Section 40A (9) No deduction towards expenditure incurred for setting up of a fund or trust shall be allowable as deduction unless it is for an approved gratuity fund, approved provident fund or approved superannuation fund. It means that if the trust is not registered, expenditure incurred for its creation would not be eligible for deduction. hamster eating their babies

Say No To Cash - taxguru.in

Web22 Apr 2024 · - For Indian Banks an amount equal to 8.5% of gross total income + 10% of aggregate average advances made by rural branches shall be allowed as a deduction. For banks incorporated outside India and other financial institutions 5% of the gross total incomeshall be allowed as a deduction. *Income before this deduction and deduction u/s … Web4 May 2024 · Section 40A (i) (a) does not allow you to claim deductions on 30% of any sum that you have paid to an Indian resident where TDS has not been deducted. In case you have deducted the TDS in any subsequent year or paid after the due date u/s 139, you can claim 30% of such an amount as tax deductions. WebSection 40A (3): Disallowance of expenses made in Cash and Exceptions. Section 40A (3) came into existence in order to disincentivise cash transactions. It is an important section of the Income Tax Act, 1961, designed to reduce tax evasion and increase accountability. In short, all payments should be made in demand draft/cheque. bury grammar portal