income tax
This query is : Resolved
29 June 2011
i want to get complete law summary of Sec 40A(3). Please help me
29 June 2011
Expenses or payments not deductible in certain circumstances.
40A(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
40A(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
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30 June 2011
Thank you so much sir.
But still i have a doubt. whether this limit of Rs. 20000 is in respect of expenditure, or Payment which is made in respect of such expenditure.
By Reading Law as per 40A(3)is seems that limit of 20000 is in respect of Payment for such expenditure. Further disallowance will be if Payment or aggregate of payment exceeds 20000 in a single day to same person.
Sir, would u help me to clarify what law wants to say in respect of expenditure.
For example if 2 bill is raised by same party of Rs. 18000 or Rs.19000 respectively on the same day against purchase made by me and payment is made with by a single cash voucher attaching two bills. In such case my opinion is that since Payment in aggregate exceeds 20000 hence expense should disallowed. Whether i m right or wrong Please clarify and what is expenditure in my above example 37000 or 18000, 19000.
But still i have a doubt. whether this limit of Rs. 20000 is in respect of expenditure, or Payment which is made in respect of such expenditure.
By Reading Law as per 40A(3)is seems that limit of 20000 is in respect of Payment for such expenditure. Further disallowance will be if Payment or aggregate of payment exceeds 20000 in a single day to same person.
Sir, would u help me to clarify what law wants to say in respect of expenditure.
For example if 2 bill is raised by same party of Rs. 18000 or Rs.19000 respectively on the same day against purchase made by me and payment is made with by a single cash voucher attaching two bills. In such case my opinion is that since Payment in aggregate exceeds 20000 hence expense should disallowed. Whether i m right or wrong Please clarify and what is expenditure in my above example 37000 or 18000, 19000.
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