Sec 40A(2) and Sec 40A(3) of Income tax Act 1961
This query is : Resolved
C.A. Sanjay Bhatia
(Querist)
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
CA Hemant T Dewani
(Expert)
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
