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Sec 40a(3)

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Querist : Anonymous

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Querist : Anonymous (Querist)
24 July 2012 My client has incurred Rs.8,oo,ooo for puchasing a land in cash.whether is it allowable under Income Tax?
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shibu

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shibu (Expert)
24 July 2012 Sec 40a(3) states that any expenditure incurred for an amount exceeding Rs.20000 should be met by way of Account Payee Cheque or DD. If is not done like that then whole of that expenditure will be disallowed. Here land purchased is of capital nature and therefore sec 40a(3) will not apply. The assessee have to disclose his source of income
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Querist : Anonymous

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Querist : Anonymous (Querist)
26 July 2012 if source of income is disclosed,then they would be able to incur an capital expenditure of Rs.8,00,000 in cash?
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