Sec 40A(3)
This query is : Resolved
08 December 2009
I want all u experts to join us in a popular discussion "Sec 40A(3)" . As v need an expert opinion.
D discussion is goin too long plz help us.
The query is
'If an enterprise pays Rs. 15,000/- pertaining to a particular expense and also pays Rs. 16,000/- pertaining to some other expense (both in cash) on a single day and to a same party then will this expense be allowed or disallowed u/s 40A(3)??'
D discussion is goin too long plz help us.
The query is
'If an enterprise pays Rs. 15,000/- pertaining to a particular expense and also pays Rs. 16,000/- pertaining to some other expense (both in cash) on a single day and to a same party then will this expense be allowed or disallowed u/s 40A(3)??'
08 December 2009
These expenses will be disallowed.
The section reads as under:
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day,...........
The word "any expenditure" covers all types of expenditures.
The purpose of this section is to avoid heavy cash payments in normal circumstances so that connected persons are taken into tax-net. In this way; they will be identified.
Ca Rakhecha
Surat
The section reads as under:
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day,...........
The word "any expenditure" covers all types of expenditures.
The purpose of this section is to avoid heavy cash payments in normal circumstances so that connected persons are taken into tax-net. In this way; they will be identified.
Ca Rakhecha
Surat
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
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Non filing of I T Returns
- UDIN ISSUE
- SALARY CAN BE CAPITALIZE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- TDS on purchase of under construction property from a reseller
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- 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
