applicability of section 40A(3) and 194 i of Income tax act - Professionals - Taxation - TIK Share
0 Likes 305 Views

applicability of section 40A(3) and 194 i of Income tax act


Ankit Sharma

2016-07-12

Hi

My client has paid lease deposit  of Rs 5,50,000/- in cash. Lease agreement is for two years. Lease deposit is not refundable, so he is not supposed to pay any monthly lease rentals. 

From my point of view, lease deposit of Rs 5,50,000/- should be accounted proportionately to lease period, as it is paid in cash, it should be disallowed u/s 40A(3).

And also TDS should be deducted u/s 194I.

Am I correct?