Section 40a(3)

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Vishal gabani (Querist)
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19 March 2012 If any payment made in cash to staff or workers for bonus having amt more than 20000(individuall) for all one single entry pass debited to bonus to workers . Is it attract section 40A(3) of income tax act? Second quarry is does it make any differance to this section if payment made as salary to part time or full time employee more than 20000 after TDS?

CA Prashant Gupta

CA Prashant Gupta (Expert)
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19 March 2012 any exp which is more than 20,000/- is paid in single payment i.e. more than 20,000/- then it will fall u/s 40A(3).
in this case bonus of employee is more than 20k so it will attract 40 A(3).
if payment is made as salary after TDS then also situation is same. because salary is exp. it is irrelavant if TDS is deducted or not.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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19 March 2012 There is no difference u/s 40A(3) since the both the cases the amount should be an expense.

yes, this case comes under the purview of 40A(3).

Vishal gabani

Vishal gabani (Querist)
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19 March 2012 Thank you sir plz reply me what is sec. 6DD ?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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19 March 2012 Rule 6 DD is contains exceptions to the section 40A(3),those cases no dis-allowance will be attracted.

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