sec 40(3)
This query is : Resolved
15 September 2009
if we purchase trading goods in cash for Rs. 20000 in a day frm a single party will this expense be disallowed u/s 40(3).Payment to creditor of Rs. 20000 in cash is allowed or not.
15 September 2009
not allowed
15 September 2009
Payment in excess of Rs. 20000 is not allowed if paid in cash.
15 September 2009
allowed if up to 20000, after that disallowed
15 September 2009
SECTION 40A(3) STATES ;
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
NOTE THE WORD EXCEEDS
AS SUCH IF IT IS ONLY 20,000 , NO DISALLOWANCE
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
NOTE THE WORD EXCEEDS
AS SUCH IF IT IS ONLY 20,000 , NO DISALLOWANCE
15 September 2009
No disallowance as it does not exceed Rs. 20,000/-
15 September 2009
Not Disallowed
17 September 2009
thanks
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