AMENDEMENT TO SEC 40(a) (ia)

[VEMULA CHANDRASEKHAR]

Dear Members

I have a case under scrutiny for the assessment year 2013-2014. The assessee has not deducted Tax on Interest payments to NBFC. The ITO would like to add the interest paid under section 40(a) (ia) to the total income. I argued before ITO that section 40 (a) is amended to include a proviso where in if the assessee can get form 26A from the resident payee certified by a chartered accountant then addition shall not be made. But the assessing officer says the provisions are applicable from the assessment year 2014-2015. Kindly guide me in this regard

AI Summary

Tax Dispute: Can Certified Form 26A Prevent Income Addition for 2013-2014? ITO and Assessee at Odds Over Sec 40(a)(ia). An individual is seeking advice on a tax issue for the assessment year 2013-2014, where the assessee did not deduct tax on interest payments to a Non-Banking Financial Company (NBFC). The Income Tax Officer (ITO) intends to add the interest paid to the total income under section 40(a)(ia). The individual argues that an amendment allows for no addition if a certified form 26A is obtained, but the ITO claims this provision applies only from the assessment year 2014-2015. The individual seeks guidance on this matter.