section 40(3)(a)

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pankaj (Querist)
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29 June 2011 as per the provision of this section an assessee can't pay for an expenditure in cash more than rs.20000 or 35000 (as Case may be) to a person or party in a day.otherwise it will be disallowed.
here, for a transporter, payment of different H.S. to a person in a day will be combind or consider as diffrent payment.
please clarify.if any decision has been given relating to this section .please give the refrence also.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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29 June 2011 Kindly clarify whether this is Service Tax or Income Tax Act

pankaj

pankaj (Querist)
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29 June 2011 as per income tax.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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29 June 2011 Expenses or payments not deductible in certain circumstances.

40A(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.

This is to be read with Rule 6DD

320 ITR 185 (ALL)

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pankaj

pankaj (Querist)
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30 June 2011 if a transporter make some payment(more than 35000) to a person in a day against different H.S.,whether this payment will allowed ?.

example: if a transporter makes payment Rs. 19000 each for three H.S. to a person in a day.here, the total payment to the person is 57000,but for different H.S.
whether this payment will allowed ?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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30 June 2011 Kindly do not write short form what is H.S explain

pankaj

pankaj (Querist)
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30 June 2011 Dear Sir

H.S.=Hire Slips

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