Cash expenditure allowed u/s 40(A) 3

whether monthly salary of Rs 20000/- in respect of a single employee can be made in cash as 10000/- paid on 01st day of the month and balance 10000/- paid on 15th of the month. Since the payment to a person in a day doesn't exceed amount prescribed as per 40(3) (A) will be eligible for deduction under PGBP?
Replies (2)
Quick Summary
This discussion explores the deductibility of cash salary payments under Section 40(A)(3) of the Income Tax Act. Specifically, it questions whether paying an employee £20,000 monthly in two £10,000 cash instalments (on the 1st and 15th) qualifies for deduction under Profits and Gains from Business or Profession (PGBP). The consensus is that since the daily cash payment does not exceed the prescribed limit, it should be eligible for deduction.

Yes, you can
No restriction
Thank you

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details
Company
ARTICLESHIP 10 August 2026
Article Assistant

Suraj Garg and Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details