Applicability of Sec-40A(3) of the IT ACT,1961

yes it is applicable

Yes it is applicable.  Since the payment is made directly to the bank a/c of the creditor no disallowance comes.

 YES SECTION 40 (A)(3) IS APPLICABLE.

 No no. It doesnt come under 40A(3). It comes under exemption as per rule 6DD

it will be disallowed u/s 40A(3) since payment is made by other than a/c payee cheque or bank draft it will be treated as payment made in cash because it is irrelevant who deposit cash in bank and also there is no identification of source of receipt

 Sir,

there are lot of cases of exemption where in if you pay such a manner, then 40A3 will not be applicable even though you dont pay by account payee cheque or draft like payment during bank strike, payment to agricultural people, payment thro depositing in bank account etc.  These list comes under rule 6DD. I kindly request the others to go thro rule 6DD which contains those explanation.

 plz follow this link.... but i couldnt find this particular exemption..... Do check out.../forum/messages/2008/10/15526_rule_6dd_of_income_tax.asp

Please go through Rule 6DD, it clearly states that any payment made to a banking company is exempt from section 40A(3).

here motive is not know the identity of depositor rather it is to make it difficult for the payee to hide his income/assets.

Yes, it will be disallowed u/s 40a(3).

 yes, it will be disallowed u/s 40a(3)

it is disallowed u/s 40A(3),