urgent sec-40A (3)
This query is : Resolved
28 September 2010
Hiiiiiiii Friends
If a car is purchased with temprarory registration and after one month its registeration is made in cash which is more then Rs. 20000/-& there is no receipt for the same. Than it will be allowed & can be added in the value of the car?
kindly reply me soon .
If a car is purchased with temprarory registration and after one month its registeration is made in cash which is more then Rs. 20000/-& there is no receipt for the same. Than it will be allowed & can be added in the value of the car?
kindly reply me soon .
28 September 2010
The provision of section 40 A(3) shall not apply in respect of expenditure for which no deduction is claimed.
Example capital expenditure.
Example capital expenditure.
29 September 2010
Thank you sir.
sir i have some problem in doing prepration for my CA PCE examination,Actually whatever i m reading,i feel that everything is washed up & i have concentration problem also.
can u help me.pls provide me ur email id,if u can.
thanks
sir i have some problem in doing prepration for my CA PCE examination,Actually whatever i m reading,i feel that everything is washed up & i have concentration problem also.
can u help me.pls provide me ur email id,if u can.
thanks
02 August 2025
Regarding your urgent query on Section 40A(3):
Section 40A(3) disallows expenditure paid in cash above Rs. 20,000 to a single person on a single day if the payment is not by cheque or bank transfer.
However, this restriction does NOT apply to capital expenditure like purchase of a car.
So, if you paid cash above Rs. 20,000 for registration (capital expenditure), even without a receipt, this should not be disallowed under 40A(3).
But practically, lack of receipt may create documentary issues, so try to get some proof or official record of payment.
Section 40A(3) disallows expenditure paid in cash above Rs. 20,000 to a single person on a single day if the payment is not by cheque or bank transfer.
However, this restriction does NOT apply to capital expenditure like purchase of a car.
So, if you paid cash above Rs. 20,000 for registration (capital expenditure), even without a receipt, this should not be disallowed under 40A(3).
But practically, lack of receipt may create documentary issues, so try to get some proof or official record of payment.
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