Disallowance undersection 40a(3)

Practically not, as books of accounts not provided by the assessee. But under cross verification inquiry may arise, which may be little tedious job; even though no disallowance as per law, but better to avoid such situations.

Thank you fo your reply sir.

Dear Hemanth,

It would not be disallowed as 44AD is deemed income provison where only 8 % income is required .and its very rare case when a return filed under 44AD is slected for scruitny .

But it would be advised to avoid such transaction .

Hope your query has been answered .

Originally posted by : Hemanth Ranka

Will payments in excess of Rs.20000.00 be disallowed even where the assessee discloses his income under sec 44AD.

There is no disallowance when income is assessed under section 44AD

Section 28 to 43c are not applicable where income is assessed u/s 44AD