Disallowance of cash expense

This query is : Resolved

ANIMESH PANDEY (Querist)
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13 April 2018 Dear Sir,
We have received a bill of Rs.14500/- to be paid in cash .
I want to know if I would make this payment against this bill in two dates(7000/- and 7500/-) then also the disallowance U/S 40A(3) will hit.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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13 April 2018 No, the monetary limit is rs 10000 now

ANIMESH PANDEY

ANIMESH PANDEY (Querist)
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16 April 2018 Sory Sir I dint understand what you want to say. Pls clearify in bit details .

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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16 April 2018 40 A (3) is applicable , if cash more than 10000 is paid in one day. if the payment is made on two dates and each payment is less than 10000. than no dIS AllOwance u/s 40 A (3)

Message likes : 2 times

ANIMESH PANDEY

ANIMESH PANDEY (Querist)
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19 April 2018 Sir , it means we have to see limit of Rs.10000 per party per day , Not per party per bill

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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19 April 2018 yes, this is the right interpretation

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