Sec.40a(3)
This query is : Resolved
Mohan Babu.L
(Expert)
24 September 2013
Hi Ankit,
The word "expenditure" in section 40A(3) covers expenditure of all categories including that on purchase of goods and merchandise as also payment for services. The payments made in advancing loans and returning the principal amount of borrowed moneys are not covered by these provisions of section 40A(3), as these do not constitute expenditure.--Vide Letter F. No. 1(22) 69-TPL (PT), dt. 18-4-1969. Good Luck..
The word "expenditure" in section 40A(3) covers expenditure of all categories including that on purchase of goods and merchandise as also payment for services. The payments made in advancing loans and returning the principal amount of borrowed moneys are not covered by these provisions of section 40A(3), as these do not constitute expenditure.--Vide Letter F. No. 1(22) 69-TPL (PT), dt. 18-4-1969. Good Luck..
Nikhil Kaushik
(Expert)
24 September 2013
another simpler way of looking at it is :
whatever expense is being claimed against profits in computation of taxable income is expenditure and rigours of Section 40A(3) will apply to such items.
whatever expense is being claimed against profits in computation of taxable income is expenditure and rigours of Section 40A(3) will apply to such items.
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
- Accounting treatment of AMC alongwith the purchase of Laptop
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Tax on Amount transferred in HUF Account
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- 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
- 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?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
