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40A(3) & 194C

TDS / TCS 1869 views 19 replies

 The following sub-sections (3) and (3A) shall be substituted for sub-section (3) of section 40A by the Finance Act, 2008, w.e.f. 1-4-2009 :

(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of paymentsmade to a person in a day, otherwise than by an account payeee cheque drawn on a bank or account payeee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure."

Dear Dhruv

As per new amendment

Any Expenditure payment made to a person in a day exceeding Rs.20000/- in respect of a single bill or more than one bill otherwise than A/c payee cheque or Bank draft shall be disallowed.

so far your case is concerned Bills were raised on different dates, and amount of each bill does not exceed Rs.20000/-.so nothing shall be disallowed though payment made exceeding Rs.20000/-.

Dear ,There are two bill so don't worry  but pay with different Vrs & 94 C will not be applicable as single bill have to be of 20K,

I WISH TO ASK ABOUT SUBMISSION OF FORM 15J UNDER SECTION 194C OF THE IT ACT  . IF ONE FAILS TO SUBMIT THE DETAILS TO THE INCOME TAX WHAT WOULD BE THE IMPLICATON.

WHAT IF ANY EXPENDITURE AMOUNTING IN EXCESS IF 20000/- SAY 40000/- IS PAID IN CASH ON 2 OR 3  SEPERATE DAYS . HOW WOULD THIS BE TREATED


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