Disallowance u/s 40(a)(ia) or Demand u/s 201 Can’t be Resorted for Non Filing of Form 15G or 15H !

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Disallowance  u/s 40(a)(ia) is provided if the  expenditure is related to a provision under which tax was deductible and either tax was not deducted or not deposited as per law. Section 197A provides relief to the deductee that in case they are eligible to furnish a declaration in Form 15G or Form 15H , they can do so and on the basis of such declaration , the deductor will not deduct the tax at source. As per the law, it is provided that the declaration has to be submitted within a time limit by the deductor with the Commissioner of Income Tax under whom he/she/it is assessed. The question , however whether the expenditure on which TDS was not deducted by the deductor can be disallowed under section 40(a)(ia) if the declaration in Form 15G or Form 15H was not filed at all or filed after the date prescribed in law.

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