Like to know the applicability of Sec 40A(3) of the incometax Act if Salay is paid Rs21000/-in cash?
Menu
40 a (3) of it act
Replies (11)
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
salary is paid after deducting tax by an employer to an employee, no disallowance operates, after fulfilling such condition.
(a) Such employee is temporarily posted for a continuous period of 15 days or more in a place other than his normal place of duty or on a ship.
(b) He does not maintain any account in any bank at such place or ship.
all other cases fully disallowed.
| 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.
100% salary will be disallowed
Recent Topics :
- GSTR-9 Table 8A Portal and Excel Issues
- IGST on Commercial Rental Income (Different State)
- Revocation of suo moto cancelled GST registration
- Is there any faculty taking chapterwise test in CA
- Late Fees and Interest
- HDFC Bank’s Bureaucracy: The Nightmare of Fl
- Running a CSC Center, Maha E-Seva Kendra, Setu Ken
- GSTR-9 Table 8A issue
- CA Inter Coaching institutes at Hyderabad
- Looking for practising CA
CAclubindia
