Section 40a(3)


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Querist : Anonymous

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Querist : Anonymous (Querist)
23 August 2011 Respected sir
i have query regarding section 40A(3).if cash withdraw by a partner exceeding rs.20000/- in a single day in his partnership firm.Is this amt allowable or not?thanks in advance.

23 August 2011 If any expenses booked against the withdrwal more than Rs.20000 then it will be disallowed u/s.40A(3) subject to rule 6DD

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Querist : Anonymous

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Querist : Anonymous (Querist)
23 August 2011 respected sir
that means partner can withdraw excess Rs. 20000 for drawing.

23 August 2011 Yes. Section 40A(3) applies on expenses which you are claiming in Income tax, so Drawings not an expenses, so sec.40A(3) not applicable on that


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