Sec. 40A(3) of Income tax Act
This query is : Resolved
13 September 2007
Hi Guys,
This is Mohammed Ghouse, I am in CA Finals. I need a clarification on the following:
Whether Restriction stated in S. 40A(3)of IT Act is applicable on bill/invoice wise or payment wise. Supposing an expenditure of Rs. 1 lacs (covered by single bill) is paid off as Rs. 20000 each on different occasion supported by diffrent cash voucher, whether still the above said section is attracted.
Good Luck & warm reg.
Ghouse
This is Mohammed Ghouse, I am in CA Finals. I need a clarification on the following:
Whether Restriction stated in S. 40A(3)of IT Act is applicable on bill/invoice wise or payment wise. Supposing an expenditure of Rs. 1 lacs (covered by single bill) is paid off as Rs. 20000 each on different occasion supported by diffrent cash voucher, whether still the above said section is attracted.
Good Luck & warm reg.
Ghouse
13 September 2007
Hi Mr Ghouse,
Yes the Section 40A(3) would be attracted, you are not allowed to make the Cash payment to same party in the same accounting year above 20000.
please refer the following judgements for further clarifications
Related Judgements
COMMISSIONER OF INCOME-TAX v. SUNDARAM INDUSTRIES LTD.
Yes the Section 40A(3) would be attracted, you are not allowed to make the Cash payment to same party in the same accounting year above 20000.
please refer the following judgements for further clarifications
Related Judgements
COMMISSIONER OF INCOME-TAX v. SUNDARAM INDUSTRIES LTD.
12 October 2007
Thanks for giving case laws.
17 March 2008
yes
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
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Gst registered proprietorship firm
- Minimum tax payable to file Updated return
- Dep. as per companies act
- Applicability of GST on Salary Reimbursement Component
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- SALARY CAN BE CAPITALIZE
- GST ISSUE OF INPUT AND OUTPUT GST
- GST Intimation due to Government took possession of Business Premises under PPE Act
- 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
