19 December 2009
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.
19 December 2009
Sec.40A(3) Will attract if the Payment made more than Rs.20000/- by cash or other than account Payee followig points are also to be considered 1.even payment made to one party in a single day more thanr one time ( agregate value more than Rs.20000/- sec.40A(3) will attract
but you are making a payment for two or more bills this section will not attarct unless the single bill exceeds Rs.20000/-
CAclubindia
