Cash disallowance u/s 40a(3)

what about 51 paise??????????????????????????

Learned hardik

Section 288A is applicable to rounding off total income. S 288A do not apply to section 40A(3) or any other sections. Therefore no question of rounding off.

Payment made 20,000.50 section 40A(3) gets attracted.

Thanks

https://taxbykk.blogspot.com/

for easy reference reproducing section 288A as it is

Rounding off of income.

The amount of total income computed in accordance with the foregoing provisions of this Act shall be rounded off to the nearest multiple of ten rupees and for this purpose any part of a rupee consisting of paise shall be ignored and thereafter if such amount is not a multiple of ten, then, if the last figure in that amount is five or more, the amount shall be increased to the next higher amount which is a multiple of ten and if the last figure is less than five, the amount shall be reduced to the next lower amount which is a multiple of ten; and the amount so rounded off shall be deemed to be the total income of the assessee for the purposes of this Act.

Even cash Paid Rs.20000/- was allowed U/s40a(3).

If cash paid above of Rs. 20000/- then  its Disallowed U/s 40a(3).

how did u pay 51 paise as cash?..practicaly impossible..

Agree above..Sec 288A applicable for rounding of rupee in multiple of Rs 10,paisa ignore.

There is no link to Sec 40A(3)...This Sec is applicable when payment of cash exceeding Rs 20000..to single person in same day.

HERE IS Rs 20000 not cxceed, so allowed exp.

if cash paid Rs.20000/- in 3 days against purchase of 60000/-  then it is allowable or not ??????

Yes, If payment of Rs. 20,000/- is being made in 3 consequent days, then that is allowed as payment should not be more than Rs 20,000/- in single day.

Sec288A dealt with rounding of Total taxable income but not relate to every transaction(Income or Expenses) in process of accounting and furthur as our experts said even cash payment up to rs.20000 will be allowed! and coming to sec288A,if last digit of total taxable income is 5 or more then it will be rounded by adding a number that will let last digit to "0" i.e as in your case of rs19999.51 assume it is total income/Loss,it will be rounded off to 20000(Last digit>5,Add"1" to make last digit "0") and in case if last digit is less than5,Make it "0" by subtracting required number