I learn that Cash expenditure for single transaction has been increased from 20,000/- but whow much that I would like to know and from which date?. Further, this deals with which section of IT Act. Please explain. I will be very thankful to you.
26 June 2010
As per Sec.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.
Provided further that in the case of payment made for plying, hiring or leasing goods carriages, the provisions of sub-sections (3) and (3A) shall have effect as if for the words “twenty thousand rupees”, the words “thirty-five thousand rupees” had been substituted.]
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