if in the opening balance sheet there is opening bal. of salary is rs. 18000(cr) and this year expense is rs. 6000. and all the rs. 24000(18000+6000) is paid by cash to employee. will it fall u/s 40 or not? although epense of this current year is rs. 6000 . submit ur replies as earlier as possible
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please help me
Replies (3)
Dear friend, Sec 40 disallowance is applicable where any payment exceeds the specified limit of Rs.20000/- in a single transaction.
when ur making a single cash payment over Rs.20000/- (for the outstanding + current expenditure), it will definetly attract the disallowance u/s 40a(3) as the payment is over the specified limit in the example given by you.
dear friend
this transaction falls u/s 40a(3).this amount shall be disallowed.
thanks for replies
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