Sec 40A(2) and Sec 40A(3) of Income tax Act 1961
This query is : Resolved
14 February 2009
A COMPANY HAD PAID A SUM OF 25000 IN CASH FOR AN EXPENTURE TO A RELATIVE OF DIRECTOR OF COMPANY.THE AMT WAS UNFAIR TO THE EXTENT OF RS.6000 SO THAT FAIR VALUE IS RS.25000-6000=19000
HOW MUCH EXPENDITURE WILL BE DISALLOWED AS PER SEC 40A(2)i.e expenses on actual payment AND 40A(3)ie cash payments excedding Rs 20000
HOW MUCH EXPENDITURE WILL BE DISALLOWED AS PER SEC 40A(2)i.e expenses on actual payment AND 40A(3)ie cash payments excedding Rs 20000
14 February 2009
we are paid rs.25000 as a expenses but exp are allowed rs.19000/- rs.6000/-is disallowed so your claim for exp are rs.19000/- this are below rs.200000/- only rs.6000/-is added in your income
14 February 2009
Continuing Mr.Dewani, section 40A(3) will not attract.
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