Disallowance for non-deduction of tax from payment to resident in respect of Income from Other sources

Budget 2017, insert a new section 58(1A)(ia), it provides that the provision of section 40(a)(ia) will apply in computing income chargeable under the head “ income from other sources” as they apply in computing income chargeable under the head of “ profit and gains of business & profession”.

Under the current provision of section 58 disallowance incudes disallowances such as disallowance of cash expenditure, disallowance for non-deduction of tax from payment to non-resident, etc, now it applies to resident also in section 58.

The amendment is applicable from the Previous year 2017-18 and will accordingly apply in relation to assessment year 2018-19 and subsequent years.