Regarding Section 40A

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This discussion clarifies the application of Section 40A(3) of the Income Tax Act regarding cash payments. If a single bill exceeds the Rs 10,000 (or Rs 35,000) limit, but the payments are made on different dates and no single payment surpasses the threshold, Section 40A(3) is generally not attracted. This means such expenses may still be allowed for tax purposes.

ABHI KUMAR

ABHI KUMAR (Querist)
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27 April 2025 BILL PURCHASE DATED 15-3-25
AMOUNT 16000

CASH PAID DATED 17-3-25 AMOUNT= 9000
CASH PAID DATED 18-3-25 AMOUNT= 7000
IS ALLOWE OR NOT IN INCOME TAX RULE

THANKS IN ADVANCE

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 April 2025 If an assessee makes payment of a single bill (exceeding Rs. 10,000 / Rs. 35,000) on different days to the same person in cash, provision of sec. 40A(3) is not attracted, provided any of the payment does not exceed Rs. 10,000 / Rs. 35,000.

Read more at: https://taxguru.in/income-tax/section-40a3-3a-restrictions-cash-expenditure-capital-revenue.html

ABHI KUMAR

ABHI KUMAR (Querist)
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27 April 2025 OK SIR MANY MANY THANKS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 April 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 September 2025 Good luck.....

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