cash payments u/s 40(A)(3)
This query is : Resolved
11 February 2008
Whether any advance payment exceeding Rs.20,000 against an expenditure attracts 40(A)(3) disallowance?
S.Srinivasaraghavan
(Expert)
11 February 2008
Yes. If you mean whether the payment can be split into advance and balance, it does.
CA Hemant T Dewani
(Expert)
11 February 2008
if payments are made in excess of rs.20000
or more at one time is disallowed if amount is spil up amount is less than 20000.no disallowed
or more at one time is disallowed if amount is spil up amount is less than 20000.no disallowed
11 February 2008
If an advance for expense of Rs.22,000 is given in cash and subsequently Expense account is debited with Rs.23000 and advance (Rs.22000) and cash account (Rs.1000) is credited,whether 40(A)(3)attracts for the advance payment
S.Srinivasaraghavan
(Expert)
11 February 2008
In my opinion if an expenditure item in a single incident is more than Rs 20000, it can not be split into smaller cash pyments to avoid payment by account payee cheques, as is clear from the following provision of the section.
Where the assessee incurs any expenditure in respect of which payment is made,in a sum exceeding twenty thousand rupees otherwise than by an account payee cheque drawn on a bank or account payee bank draft twenty per cent of such expenditure shall not be allowed as a deduction:
Where the assessee incurs any expenditure in respect of which payment is made,in a sum exceeding twenty thousand rupees otherwise than by an account payee cheque drawn on a bank or account payee bank draft twenty per cent of such expenditure shall not be allowed as a deduction:
pushpendra
(Expert)
14 February 2008
YES Advance payment againg any Exp. is a part of Exp. so it will be disallowed u/s 40(A)(3)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
