Section 40a(3)

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Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2017 can we do cash payment exceeding Rs.10000 in a day to different persons for a particular thing .For example Repair of car expenses incurred Rs.35000 like for purchasing Tyers from A for Rs.10000, Battery Purchase from B for Rs.6000 so on.Does the total expense will be allowed for get disallow

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 June 2017 Total will be allowed because limit applies to payment made to a party at one time anr not to the aggregate of the payments.

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Ankur

Ankur (Expert)
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06 June 2017 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

Conclusion: Different Persons shall not be count. a Person shall be taken for this Section 40A(3).

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