TMI BlogAmounts not deductibleX X X X Extracts X X X X X X X X Extracts X X X X ..... e allowed as a deduction in computing the income of the previous year in which such tax has been paid. ] 27 [Provided further that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purposes of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the payee referred to in the said proviso; ] Explanation. -For the purposes of this sub-clause,- ( A ) royalty shall have the same meaning as in Explanation2 to clause ( vi ) of sub-section (1) of section 9; ( B ) fees for technical services shall have the same meaning as in Explanation 2 to clause ( vii ) of sub-section (1) of section 9; ( ia ) 24 [thirty percent. of any sum payable to a resident], on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, 16 [ has not been paid on or before the due date specified in sub-section (1) of section 139],- ..... 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Chapter XII-H ;] ( ii ) any sum paid on account of any rate or tax levied on the profits or gains of any business or profession or assessed at a proportion of, or otherwise on the basis of, any such profits or gains. 6 [ Explanation 1 . - For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, any sum paid on account of any rate or tax levied includes and shall be deemed always to have included any sum eligible for relief of tax under section 90 or, as the case may be, deduction from the Indian income-tax payable under section 91. ] 7 [ Explanation 2.- For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, any sum paid on account of any rate or tax levied includes any sum eligible for relief of tax under section 90A; ] 29 [ Explanation 3.- For the removal of doubts, it is hereby clarified that for the purposes of this sub-clause, the term tax shall include and shall be deemed to have always included any surcharge or cess, by whatever name called, on such tax. ] 8 [ ( iia ) any sum paid on account of wealth-tax. Explanation. -For the purposes of this sub-clause, wealth-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d which are chargeable to tax under the head Salaries ; 10 [ ( v ) any tax actually paid by an employer referred to in clause ( 10CC ) of section 10; ] 11 [ ( b ) in the case of any firm assessable as such,- ( i ) any payment of salary, bonus, commission or remuneration, by whatever name called (hereinafter referred to as remuneration ) to any partner who is not a working partner; or ( ii ) any payment of remuneration to any partner who is a working partner, or of interest to any partner, which, in either case, is not authorised by, or is not in accordance with, the terms of the partnership deed; or ( iii ) any payment of remuneration to any partner who is a working partner, or of interest to any partner, which, in either case, is authorised by, and is in accordance with, the terms of the partnership deed, but which relates to any period (falling prior to the date of such partnership deed) for which such payment was not authorised by, or is not in accordance with, any earlier partnership deed, so, however, that the period of authorisation for such payment by any earlier partnership deed does not cover any period prior to the date of such earlier partnership de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as shown in the profit and loss account for the relevant previous year, computed in the manner laid down in Chapter IV-D as increased by the aggregate amount of the remuneration paid or payable to all the partners of the firm if such amount has been deducted while computing the net profit. Explanation 4 . - For the purposes of this clause, working partner means an individual who is actively engaged in conducting the affairs of the business or profession of the firm of which he is a partner; ] 13 [ ( ba ) in the case of an association of persons or body of individuals [other than a company or a co-operative society or a society registered under the Societies Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act in force in any part of India ], any payment of interest, salary, bonus, commission or remuneration, by whatever name called, made by such association or body to a member of such association or body. Explanation 1 . - Where interest is paid by an association or body to any member thereof who has also paid interest to the association or body, the amount of interest to be disallowed under this clause shall be limited to the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Provided that where in respect of any such sum, tax has been deducted under Chapter XVII-B or paid in any subsequent year, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. Explanation .-For the purposes of this sub-clause,- (A) royalty shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9; (B) fees for technical services shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;' 3. Inserted by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006. 4. Inserted by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006. 5. Inserted by the Finance Act, 2005, w.e.f. 1-4-2006. 6. Inserted by the Finance Act, 2006, w.e.f. 1-4-2006. 7. Inserted by the Finance Act, 2006, w.e.f. 1-6-2006. 8. Inserted by the Income-tax (Amendment) Act, 1972, with retrospective effect from 1-4-1962 subject to savings prescribed by sections 4 and 5 of that Act. 9. Substituted by the Finance Act, 2003, w.e.f. 1-4-2004. Prior to its substitution, sub-clause (iii) read as under : '(iii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cribed under sub-section (1) of section 200, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. Further substituted vide vide Finance Act, 2010 w.e.f. 01.04.2010, before it was read as, [ Provided that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted- (A) during the last month of the previous year but paid after the said due date; or (B) during any other month of the previous year but paid after the end of the said previous year, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid ] 18. Omitted by the Finance Act, 2008, w.e.f. 1-4-2009. Prior to omission it was read as under: any sum paid on account of securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004 ; 19. Substituted vide Finance (No. 2) Act, 2009 with effect from 1-4-2010, before it was read as, ( 1 ) in case of a firm carrying on a profession referred to in section 44AA or which is notified for the purpose of that secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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