section 40A(3)

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deepak kumar (Querist)
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01 April 2008 is payment more than 20000 in a single day against one bill at different times is disallowed for assesment year 2008-09

Reetika Goel

Reetika Goel (Expert)
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01 April 2008 Hello Deepak,

Under Section 40A(3), any expenditure will be disallowed only if both of the two conditions are satisfied:
1) Amount of single expenditure should exceeds Rs. 20000.
2) Single expenditure against which single payment is made, should exceed Rs. 20,000.

E.g. if Travelling expenses is incurred, then the amount of one bill should exceed Rs. 20000 and the corresponding payment should also exceed Rs. 20000.

CA Praveen Chopra

CA Praveen Chopra (Expert)
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02 April 2008 Take care now from this finance bill, a slight amendment made in section 40A(3) according to which if the payment against one expenditure to a single person in a single day exceeds Rs.20000, it is disallowed.For example, you have one expenditure invoice of Rs.40000, against which you make a payment of Rs.18000/- and 14000/- to a particular person at different times,it is purely disallowed.
If you have any doubt,pls feel free to ask again.

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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02 April 2008 yes if it is against a single bill

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)
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02 April 2008 Yes, NOw it is disallowed

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