U/S 40A(3) OF THE INCOME TAX ACT
This query is : Resolved
CA Hemant T Dewani
(Querist)
11 March 2008
IN THE FINANCE BILL 2008 PAYMENTS ARE MADE
IN EXCESS OF RS,20000/- ARE TAXABLE IN THE
HANDS OF ASSESSE
WHETHER I PURCHASE GOODS IN CASH IN A SINGLE DAY LESS THAN 20000/- BUT TOTAL PURCHASE IS RS 75000/-THAT IS FOUR BILLS
WHETER THE ABOVE PURCHASE IS TAXABLE IN THE ABOVE SECTION
IN EXCESS OF RS,20000/- ARE TAXABLE IN THE
HANDS OF ASSESSE
WHETHER I PURCHASE GOODS IN CASH IN A SINGLE DAY LESS THAN 20000/- BUT TOTAL PURCHASE IS RS 75000/-THAT IS FOUR BILLS
WHETER THE ABOVE PURCHASE IS TAXABLE IN THE ABOVE SECTION
S.Srinivasaraghavan
(Expert)
11 March 2008
If each transaction of cash purchase less than rs 20000 is complete in itself, then this will not be caught within the new provision.
CA Praveen Chopra
(Expert)
11 March 2008
Take Care if the purchase of 75000/- is made from one person,than it attracts sec 40A(3) under new provision even if it is made against four invoices
CA. GOPAL SONIKA
(Expert)
11 March 2008
Mr Praveen is correct
12 March 2008
AS PER NEW PROVISION EVEN IF THE PAYMENT IS IN EXCESS OF RS.20000/- AGAINST MORE THAN ONE BILL THAN 40A(3) SHALL APPLY
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