Clause 12 - Amendment of section 40A. - Finance Bill, 2012

Amendment of section 40A. 12. In section 40A of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 2013, (i) in clause (a), the following proviso shall be inserted, namely: Provided that no disallowance, on account of any expenditure being excessive or unreasonable having regard to the fair market value, shall be made in respect of a specified domestic transaction referred to in section 92BA, if such transaction is at arm s length price as defined in clause (ii) of section 92F. ; (ii) in clause (b), in sub-clause (iv), after the words or any relative of such director, partner or member , the words or any other company carrying on business or profession in which the first mentioned company has substantial interest shall be inserted.