Sec 40(a) (3)
This query is : Resolved
Ravi Hissaria
(Querist)
02 March 2012
Dear Sir ,
As per this sec if payment of expenditure in a single day is made more than 20000 Rs then it would be disallowed expenditure now my query is that is this Sec for a single expenditure total of a same kind expenses or for aggregate value of all the expenses for example in a day I paid 15000 Rs for travel expenses and 6000 for conveyance then total exceeds 20000 can it be disallow or not
As per this sec if payment of expenditure in a single day is made more than 20000 Rs then it would be disallowed expenditure now my query is that is this Sec for a single expenditure total of a same kind expenses or for aggregate value of all the expenses for example in a day I paid 15000 Rs for travel expenses and 6000 for conveyance then total exceeds 20000 can it be disallow or not
CA. Hari Kishan
(Expert)
02 March 2012
The section is very clear that the cash payment to a single person in a single day not to exceed the limit.. and this has nothing to do with towards what expenses it is paid for.. IF SINGLE PERSON AND SINGLE DAY>> expenses disallow.. if limit crossed.
CA.rajni kalsariya
(Expert)
02 March 2012
it can disallowed because as per the provision of tax if payment made to single person in a single day more than 20000 than it is disallowed.
02 March 2012
better to show multiple transactions spread across more than one day.
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