Sec 40a(3)


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Querist : Anonymous (Querist)
27 August 2011 i wld like to knw whether payment of advance above Rs.20000/- to employees for site expenses wld qualify for deduction under sec. 40A(3) and also payment made for octroi, nmc charges and registration fees with rto wld be allowed as deduction for tax purpose.


Thank u.

27 August 2011 If you are booking any single expenses exceeding Rs.20000 against the particular advance then that will be disallowed

Government payment & payment which required to pay by cash will not be disallowed u/s.40A(3) so please refer rule 6DD for further clarity

27 August 2011 i think payment to employee will not cover in 40A (3)


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