section 40(A)3

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CA Vikas Agrawal (Querist)
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03 April 2008 we wants to make a payment exceed rs. 20000 for revenue expenditure, but according to section 40(A)3, we can not make payment exceed rs. 20000 otherwise account payee cheque/dd, in case that amount will be disallowed in income tax.

than how we can make payment exceed rs. 20000 and book these entry in books of account.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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03 April 2008 if you are paying in excess of rs.20000/ in cash then it is disallowed expences in your case when there is book entry in which type book entry is pass that is important from the f y 2008-09 if payments are made more than rs 20000/ in a single day that are also disallowed which revenu expenditure are you made if you are bifurcate the same in different heads then it is below rs 20000/-

CA Vikas Agrawal

CA Vikas Agrawal (Querist)
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03 April 2008 then whether we can make payment to the same person for ecxeeding 20000 rs., by making entry in differnt days.
is it allowable expenditure?

Jitender

Jitender (Expert)
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03 April 2008 then it will be allowed.

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)
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03 April 2008 Refer rule 6A of Itax

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)
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03 April 2008 Sorry Rule 6DD

CA Praveen Chopra

CA Praveen Chopra (Expert)
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03 April 2008 Merely passing the entry in two head is not sufficient. It depends on the invoice, if you have separate invoice for type of heads,than it is allowed whether you give 20000/- to a single person.The condition for disallowance is,payment of any single expenditure to a single person on a single day exceeds 20000/-.

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