40 a (3)

1193 views 7 replies

neeraj

930 Points Joined August 2008

Cash paid to family members on death of employee amounting to Rs.2 lac .

Is it disallowed under Sec 40A(3) ?

Replies (7)

Devendra

Chartered Accountant

4780 Points Joined March 2009

Yes. The same will attract Section 40(A)(3). If the payment satisfies any conditions of Rule 6DD, then the same does not attract disallowance.

Regards,

Devendra Kulkarni

Prateek Agarwal

Sr. Executive - Finance & Accounts

1732 Points Joined February 2011

Yes disallowed u/s 40 (a)(3)

satish kumar voleti

A.C.A. (ICWAI)

1686 Points Joined May 2008

As per Rule 6DD Terminal benefit to employee - Rule 6DD(h) Where any payment is made to an employee of the assessee or the heir of any such employee, on or in connection with the retirement, retrenchment, resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed Rs. 50,000.

since in your case the amount exceeds Rs. 50000/- hence Disallowance u/s 40(A)(3) will attract...................

Mukesh Kumar Singh

CA-FINAL

4094 Points Joined January 2011

Yes disallowed u/s 40 (a)(3), totally agree with above explaination

KARANDEEP,CA,B.Com,CS FNL

JOB

457 Points Joined March 2010

Originally posted by : satish kumar
	As per Rule 6DD Terminal benefit to employee - Rule 6DD(h) Where any payment is made to an employee of the assessee or the heir of any such employee, on or in connection with the retirement, retrenchment, resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed Rs. 50,000. since in your case the amount exceeds Rs. 50000/- hence Disallowance u/s 40(A)(3) will attract...................

Agreed with Satish..

neeraj

930 Points Joined August 2008

thnx a lot to all of u

Dhrumin

Tax Article

21 Points Joined August 2012

Suppose on 1/4/2012 i made a crdit purchase of Rs.15000/- and then on 5/4/2012 i made a credit purchase of Rs.10000/- from a single party taken as "A". Now in my books i will be having a liability of Rs.25000/- to be payable to A. Now on 10/4/2012 i make a cash payment of Rs.25000/-. Please help me out that will such cash payment of Rs.25000/- which is more than Rs.20000/- be disallowed under section 40(A)(3) or not?