Disallowance u/s 40a(3) of income tax act
This query is : Resolved
15 October 2012
Dear All,
An assessee has made payment of Rs. 45,600/- to its supplier by cash (in a single day) against a bill of Rs. 1,04,500/- and the balance amount of Rs. 58,900/- was paid in next month by crossed cheque. What will be the amount of disallowance u/s 40A(3) of the I. T. Act.
Thanks & Regards
Niki
An assessee has made payment of Rs. 45,600/- to its supplier by cash (in a single day) against a bill of Rs. 1,04,500/- and the balance amount of Rs. 58,900/- was paid in next month by crossed cheque. What will be the amount of disallowance u/s 40A(3) of the I. T. Act.
Thanks & Regards
Niki
Amol S Joglekar
(Expert)
15 October 2012
It will not be applicable in the cases of PURCHASES. For other than purchases..... 45600 shall be disallowed.
Yogesh Agarwal
(Expert)
16 October 2012
I am not agreed with the expert,,, IF it is paid for purchase then the 45600 shall be disallowed as it was paid by cash which exceeds the threshold limit .. and also the balance shall be disallowed if it is not paid by "AN ACCOUNT PAYEE" cheque.. now the word an account payee has been substituted in place of "crossed"...
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