40 a (3) of it act

20% of salary amount would be disallowed as per sec. 40A(3).

100% salary will be disallowed  U/s 40A (3).................

Section 40A(3) of the income tax act says that if the assessee makes any payment or receipt, expect from cross payee cheque or dd or any banking mode, exceeding Rs. 20000 to a single party is disallowed and treated as the personal expenditure or receipt of the assessee.

but disallowance will not operate if 

Originally posted by : CA Saiyum khan
	20% of salary amount would be disallowed as per sec. 40A(3).

WASN'T THIS LONG LONG AGO. 

Now 100 % is disallowed.

100% of the salary expense will be disallowed if the payment is made to a single person on a single day...

100% of the Salary paid will be disallowed

100% salary disallowed

100% will be disallowed.

The entire amount Rs 21000 is inadmissible in the first instance..

But in some exceptional cases as mentioned above by the user Bharath; it would be admissible.

The payment will be fully disallowed as per IT Act.