Sec 40(a) (3)

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Ravi Hissaria (Querist)
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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

CA. Hari Kishan

CA. Hari Kishan (Expert)
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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

CA.rajni kalsariya (Expert)
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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.

anurag

anurag (Expert)
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02 March 2012 better to show multiple transactions spread across more than one day.

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Sec 40(a) (3)

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