No Disallowance u/s 40A(2) If A.O Fails to Prove Transaction is Sham or for Tax Evasion

In earlier posting it was brought before readers that the section 40A(2) empowers assessing officer to disallow certain payments made to specified persons only if the assessing officer proves that the disallowed amount was excessive . But another very important criteria attached to disallowance under section 40A(2) is that A.O must also prove that payment...

The Assessment Order Is Invalid , If Your Case Selected for Scrutiny Contrary to Instruction !

Yesterday, the news of CBDT instruction for manual selection of scrutiny for FY 2014-15 case was published for readers. It is advised that all teh conditions are properly noted and when you ( unfortunately !) receives the notice for scrutiny u/s 143(2) , the first thing is to check whether it is as per CBDT...

Scrutiny Selection Criteria for FY 2014-15 Announced !

The CBDT has issued instruction no 6/2014 dated 3/09/2014 by which it has laid down the criteria for manual selection of cases i.e returns for scrutiny under section 143 or section 153A ( for search cases ) . Following are the cases , which the Board instructs Chief Commissioners or DGIT to select the case...

No Disallowance under sec.40A(2) Without Proving How Payment was Excessive

Section 40A of the Income Tax Act provides power to the assessing officer for disallowing expenses or payments not deductible in certain circumstances . These circumstances are cash payments in excess of Rs 20,000 or when the payments are made to certain specified persons or entities . Sub-clause 2 of section 40A provides that when...

What Every Freelancers Should Know About Registration & Filing of Service Tax Return .

This is part of series of post written for help of freelancers from India who usually provide services through internet to the clients abroad and inside. This website has already brought the article Why Freelancers from India Working for Foreign Clients Online May Not Be Liable for Service Tax ? , but many freelancers also...