Section 40A(3)

This query is : Resolved

Sneh Thakkar (Querist)
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14 March 2009 As per rule 6DD of section 40A(3), any payment in cash above Rs. 20000/- was disallowed 100%. However if I have 2 bills of the same party of Rs. 15000/- each and I pay altogether Rs. 30000/- towards the respective 2 bills in a single day, wlll the same be disallowed considering the fact that the payment was made agains 2 bills. I guess This was allowed earlier but I dont know with the recent amendment of addition of some wordings 'in a day' or so.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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14 March 2009 Dear Sneh,
It has nothing to do with amendments, Payment is of 2 different bill which is of less then 20,000. So 40A(3) is not applicable.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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14 March 2009 40A(3) is not applicable

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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14 March 2009 for Sec 40A(3) see Bill wise payment, it is immaterial that payment is made to the same party and in one single day
Since in your case each bill is less than Rs.20000/- so expences are allowed

Sneh Thakkar

Sneh Thakkar (Querist)
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15 March 2009 thanks to all of you for the help!

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