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Section 14A

Can you explain the topic "Restrictions on availability of expenditure "( chap 3 board material)


T G

T G

CA Inter

1K+

18-Feb-20 16:14

16

Answers (4)

Plz provides which part u dint understand


Gokul Nath

Gokul Nath

CA Inter

330

19-Feb-20 14:49

The expenditure in relation to income not forming part of total income shall be the aggregate of two points : 2nd point can you make it clear with example ie. An Amount equal to 1% of the annual average of the monthly averages of the opening and closing balances of the value of investment, income from which does not form part of total income. And they even told that However, the amount referred to in clause1 and 2 shall not exceed the total expenditure claimed by the assessed. Here what will be the total expenditure if the claim made by the assessee that no expenditure has been incurred. Above the 1st point

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T G

T G

CA Inter

1K+

19-Feb-20 19:23

The expenditure in relation to income not forming part of total income shall be the aggregate of the following : (I) the amount of expenditure directly relating to income which does not form part of total income , (ii)an amount equal to 1% of the annual average of the monthly averages of the opening and closing balances of the value of investment, income from which does not form part of total income. However, the amount referred to in clause (I) and (ii) shall not exceed the total expenditure claimed by the assessee. Here, can you make the (ii) point clear with example. And it should not exceed the total expenditure claimed by the assessee then how can we know the total expenditure when the claim made by the assessee that no expenditure has been incurred.


T G

T G

CA Inter

1K+

19-Feb-20 19:33

Pls refer to the income tax notes for simple explanation.


Suraj Lakhotia

Suraj Lakhotia

Admin

24-Feb-20 22:58