Section 40a(3)

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Shashank Suthar (Querist)
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23 September 2013 Mohan ltd. Purchased goods on credit from sohan ltd. on 6th may 2010 for ₹86000 which is paid as ₹15000 in cash on 11th may 2010 ₹30000 by a bearer cheque on 31st may 2010 and ₹41000 by an account payee cheque on 16th may 2010. The amount of disallowance under section 40A(3) is....
(a) ₹15000
(b) ₹30000
(c) ₹41000
(d) ₹86000

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 September 2013 Rs 30000 paid by a bearer cheque. The cheque has to be account payee.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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23 September 2013 {b} 30,000

It will be disallowed as per sec 40a{3} as payment exceeds Rs. 20000 paid thru bearer cheque...

Ganeshbabu K

Ganeshbabu K (Expert)
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23 September 2013 yes as per act,, it is 30000 going to disallow
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but it is difficult to tax auditor to find out that you have given account payee cheque or bearer cheque,, thats why icai recommends auditor to take certificate from client in this regard

Shashank Suthar

Shashank Suthar (Querist)
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24 September 2013 Thanx a lot to u all experts.....!!!!

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