RESPECTED SIR ,
MAY I HAVE ONE QUERY IN RESPECT OF INCOME TAX “ PROFIT & GAIN OF BUSINESS AND PROFESSION “ . IN IT UNDER SECTION 40(A) (3) IF ANY EXPENSES ( PAYMENT) BY MEANS OF CASH PAYMENT( EXCEPT BY AN ACCOUNT PAYYEE CHEQUE OR AN ACCOUNT PAYEE BANK DRAFT) EXCEED RS. 20000 /-
THEN SUCH EXPENSES MAY BE 100% DISALLOWED AND NOT DEDUCTIBLE.
[ AMENDMENT IN FINANCE BILL 2008]
[ UPTO THE FINANCE BILL 2006 IT MAY BE ONLY 20% DIS-ALLOWED]
NOW , FOR A BUILDERS ( AN ASSESSE ) POINT OF VIEW LAND BEINGS ITS STOCK IN TRADE . IF IT MAKE A CASH PAYMENT IN A PREVIOUS YEAR 2008-09 ( ASSESSMENT YEAR 2009-10) FOR REGISTRY OF LAND TO A REGISTRAR OF RS . 65000.00 . THEN IT BEING A REVENUE EXPENDITURE AND IT REFLACT SECTION 40A(3).
SO, PLEASE TELL ME THAT WHETHER SUCH EXPENDITURE ARE TO BE ALLOWED AS DEDUTIBLE EXPENDITURE OR NOT . UNDER THE INCOME TAX ACT 1961.
CAclubindia
