Sec. 40(a)(ii) & Sec. 40(a)(iib)

Direct Taxation

Sec. 40(a)(ii) - Income tax ,Sec. 40(a)(iib) - Royalty, licence fees, etc. payable by State Government Undertaking. The expenses mentioned in the below sections are fully disallowed?

Balamurali Unnithan M S

CA Inter

★ 3K+

12-May-21 19:53

906

Answers (5)

Royalty payment only 20% is allowed You can refer link provided below. https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=7184

Abhi C

CA Final

★ 10

12-May-21 20:59

I check, But as per the section disallows how much % under 40(a)(ii) - Income tax ,Sec. 40(a)(iib) - Royalty, licence fees, etc.

Thread Starter

Balamurali Unnithan M S

CA Inter

★ 3K+

12-May-21 21:47

They are fully disallowed if it is paid to government undertaking.

Yoga Vishnu

CA Final

★ 11K+

13-May-21 10:47

Income tax also?

Thread Starter

Balamurali Unnithan M S

CA Inter

★ 3K+

13-May-21 10:56

Thread Starter

Balamurali Unnithan M S

Income tax also?

yes

Yoga Vishnu

CA Final

★ 11K+

13-May-21 10:57