40A(3)

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Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2009 Experts
Does Sec40A(3) applies to payment of salary and bonus?
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CA Mani

CA Mani (Expert)
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28 December 2009 Yes Sec 40 A (3) talks about expenditure and it included salary and bonus also

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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28 December 2009 Yes, it can be made as per Rule 6DD wherein the following payment is placed as an exception for payments otherwise covered under Section 40A(3)

Clause (i) of the rule
where the payment is made by an assessee by way of salary to his employee after deducting the income-tax from salary in accordance with the provisions of section 192 of the Act, and when such employee

(i) is temporarily posted for a continuous period of fifteen days or more in a place other than his normal place of duty or on a ship and

(ii) does not maintain any account in any bank at such place or ship;

All payments of salary not satisfying the above are certainly covered under section 40A(3)