Section 14a

Section 14a of the income tax act was introduced in the finance act 2001 with retrospective effect from 01 april 1962 to disallow deduction with respect to the expenditure incurred by the taxpayer concerning income which does not form part of the total income under this act.

Section 14a. Sec form def 14a which is also known as a definitive proxy statement is required under section 14 a of the securities exchange act of 1934. Section 14a is applicable only when income does not form part of total income that is taxable income under the entire income tax act and not when taxed under simplified scheme of taxation etc. View of different parties and conflict.

This form is filed with the sec when a definitive. Section 14a as per section 14a the expenditure incurred by a taxpayer in relation to income that excludes total income as per the provisions of the act should not be considered as deduction while computing the total income of the taxpayer. This section provides that while computing the total income of any assessee no deduction will be permitted in respect of any expense incurred in relation to any income which is exempt from income tax.

Position prior to the introduction of section 14a. Computed the disallowance u s 14a of the act in accordance with rule 8d and disallowed a sum of rs 29 23 212 which consisted of interest disallowance of rs 8 26 lakhs under rule 8d 2 ii expenditure disallowance of rs 20 98 lakhs under rule 8d 2 iii.