Sec40a(3)
This query is : Resolved
mohd.shahzeb
(Querist)
07 January 2014
Whether different bills of different dates of one party paid on a single day and therefore the payments exceeds 20000/35000 will attracts sec40A(3).
CA DHEERAJ
(Expert)
07 January 2014
Section 40A(3) shall be attracted if the following conditions are fulfilled
- assessee incurs any expenditure
- in respect of which payment or aggregate of payments made
- to a person
- in a single day
- of a sum exceeding rs. 20000
- otherwise than by a account payee cheque or account payee demand draft
note:- in case where payment is made to the transporters for plying, hiring, or leasing goods carriages, per day limit for payment to a single person is rs. 35000 instead of rs. 20000
so in your case 40A(3) attracts and disallowed your payment u/s 40A(3)
- assessee incurs any expenditure
- in respect of which payment or aggregate of payments made
- to a person
- in a single day
- of a sum exceeding rs. 20000
- otherwise than by a account payee cheque or account payee demand draft
note:- in case where payment is made to the transporters for plying, hiring, or leasing goods carriages, per day limit for payment to a single person is rs. 35000 instead of rs. 20000
so in your case 40A(3) attracts and disallowed your payment u/s 40A(3)
CA.Shubhneet Kaur
(Expert)
07 January 2014
Section 40A(3) talks about aggregate payments made to a person in single day if it exceeds 20000 or 35000 as the case may be, will get disallowed.
07 January 2014
yes as per above analysis it is disallowed u/s 40a(3).
Naresh Dharia F.C.A.
(Expert)
08 January 2014
Advisable to separate the entry in two diff dates...hence no disallowance ....
Else...it is disallowed exceeding 20k at a time
Else...it is disallowed exceeding 20k at a time
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