XYZ Ltd paid an amount of ₹2,00,000 towards rent for the business premises to Ramavtar on 12.01.2020 and did not deduct tax at source. Ramavtar also had not paid the tax on such income. Treatment according to provision u
CS Executive · Tax Laws and Practice · PYQS · December 2020
XYZ Ltd paid an amount of ₹2,00,000 towards rent for the business premises to Ramavtar on 12.01.2020 and did not deduct tax at source. Ramavtar also had not paid the tax on such income. Treatment according to provision under the Income Tax Act, 1961 in the hands of XYZ Ltd in Assessment Year 2020-21 in respect of expenditure of rent be ______.
Answer & Explanation:
The official key records '*'. This question is excluded from automatic grading because the source does not supply an unambiguous valid choice. Official source note: All options are Incorrect. As per section 194I of the Income tax Act, 1961, no TDS is required to be deducted where the amount of rent does not exceeding ₹ 240000. Since the payment of Rent made is ₹ 200000 only, therefore no TDS is requred to be deducted. Accordingly, will not result in disallowance of rental expenditure.
Topics: Profits and Gains of Business or Profession
Related Questions in this Topic
- Mark to market loss computed in accordance with income computation and disclosure standards (ICDS) is being allowable as...
- GG Goods Transporters engaged in the business of carriage of goods owns on 1st April, 2019 trucks consisting (i) 6 heavy...
- Maintenance of such books of accounts and other documents is compulsory under section 44AA of the Income Tax Act, 1961 w...
- Any expenditure incurred by an assessee on the activities relating to the corporate social reasonability (CSR) referred ...
- XYZ limited commenced production on 1st December 2019 of paper boards made payments (i) on 1st January 2020 of ₹1,00,000...