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 Threads
- Returning the shares gifted by daughter?
- Gst tax rate
- Accounting of Govt Grant in aid-Assam Tea Estate
- Utilizing Capital gains in new home construction
- Hi i have some doubt about my microsoft exam?
- Period of holding of residential flat and its acqu
- ITRs for AY 2025-26 filed in September 2025 not pr
- Heard & Seen Around – Your Daily Economi
- Best NISM course for an Accountant
- Calculate IT on LTCG AND STCG for the FY 2025-26
CAclubindia
