A company credited consultancy fees of Rs 1,00,000 to a resident consultant without deducting tax at source. The amount disallowed under section 40(a)(ia) for that year is:

1. Section 40(a)(ia) applies to any sum payable to a RESIDENT on which tax was deductible but was not deducted, or after deduction was not paid by the due date under section 139(1). 2. The disallowance is 30% of the sum, not the whole: 30% x Rs 1,00,000 = Rs 30,000. 3. The disallowed 30% is allowed in the year in which the tax is subsequently paid. 4. Option A (100%) is the rule for payments to non-residents under section 40(a)(i), not residents — that contrast is the point being tested. _Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 3 PGBP, PDF p. 78_