banner_ad

40a(3)

Tax queries 422 views 1 replies

if payment is made to a minor,where no account can be opened,is it tenable to make payment in excess of rs 20,000

would it be disallowed under section 40A(3)?

Replies (1)

As per Income Tax Act , it is very clear that payment in excess of Rs.20000 made on a single day to the same person other wise by way of an account payee cheque shall be disallowed and added back to business income

In the exceptions to the section 40A (3), as per Rule 6DD there is no instance where payment in excess of Rs.20000 other wise by way of account payee cheque to a minor, the payment is an allowable expenditure.

Hence,  the said expenditure is disallowable, and it is not tenable to make payment as per your example (Read Rule 6DD for detailed explanation)

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details