Disallowed u/s 40a(3)

Hi Mohit,

Any payments made in cash exceeding the threshold limit shall attract disallowance u/s 40(A)(3) of the Income Tax Act, 1961, unless such payment is exempt under rule 6DD of the Income Tax Rules, 1962.

Therefore in the above case, Section 40(A)(3) shall be attracted to the payment made by Kacha adhatiya.

Regards,

Devendra Kulkarni

Hi Devendra, But the amount of payment made is not claimed as expense by adhatiya, still will it be disallowed?

Then there is no need to disallow the expense.

Regards,

Devendra Kulkarni

Dear Sir,

I have studied Singhania Books that if Fixed Asset Purchased in cash above Rs.20,000 then depreciation will be disallowed.But now came to Know that  cannot be Disallow U/S 40A(3)

Which is correct pls give me some confirmation

With Regards

Manoj Kumar Parida