Question ID :
As per section 14A disallowance is called for of any expenditure in relation to income which does not form part of the total income. The main item of income hit by the section is dividend from domestic companies. Now as per section 115BBDA the dividend receipt in excess of 10 lakhs is subject to income tax .
My query is whether an assessee who has received dividend of only 8 lakhs can contend that the dividend income in general is no longer exempted income for the limited purpose of section 14A.
The second part of my query is whether section 14A cannot be invoked at all for an assessee who has dividend receipt of 11 lakhs.
Jul 07, 2018