Sec 40a(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2013 Dear Experts,

If loan is repaid by cash exceeding Rs 20000/- will it attract dis allowance u/s 40A(3)?

Likewise if an advance against expenditure is made exceeding Rs 20000/- by cash will it attract the dis allowance u/s 40A(3)?

CA Vikas Acharya

CA Vikas Acharya (Expert)
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18 April 2013 it will attract 269t. same as in case of expenditure in excess of 20000.
but this section is particularly for loan and deposits

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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18 April 2013 if loan is repaid in cash in excess of 20K then it is dealt with 269T not by 40A(3)

if advance is made in excess of 20000 in cash then we need to check whether expenditure is excess of 20000 or not. if expenditure is less then 20000 then there is no problem. but if single expenditure is of excess of 20000 then it will be disallowed u/s 40A(3)

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 April 2013 1. Loan repayment is out side the purview of section 40A(3) of the Income tax Act,1961.
2. Advance will fall with in the expression 'expenditure' so as to attract the above said section.
Citation:- 169 ITR 12 (Raj).

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