query in respect of sec 40A(3)

Yes.If the cash payment below Rs. 20,000/- done against seperate bills....................ther will be no disallowance..........as every transaction has to be considered seperately.................
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 yes, agree with suri

if invioce value exceeds Rs. 20000/- , then 40A(3) will come into existence.

you can pay as much you want (>20000) in a single day to a person

Agree. Section 40A(3) shall not be hit in this case.

Dear all,

If an assessee makes payment of different bills, none of them exceeding Rs. 20,000 in the same day, in cash or bearer cheque,section 40A(3) is not applicable even if the aggregrate payment is  more than Rs. 20,000.This is because of the fact that section 40A(3) is applicable only if an expenditure exceeds Rs. 20,000.

If the payment is made to a single supplier even then it is allowed?eg.if RS.56000 is paid to single supplier in cash and paid in a single day but trough different bills .even then does 40a(3) does not apply

agreed with Suri....

Yes...There will be no disallowance since the provisions of section 40A(3) are not attracted

ACCORDING 2 NEW AMENDEMENT IF WE PAY >20000 IN  CASH TO ONE PERSON IN A DAY (AGGREGATE) THEN TOTAL AMOUNT IS DISALLOWED

Dear all,

i will not agree with opinions given by the co-members,

because if an assessee paid in excess of Rs.20,000/- per a day otherwise than by an account payee cheque or account payee demand draft then, the entire expenditure related to such payment shall be disallowed. here we are not concerned about the bill or expenditure we have to see whether the payment exceeds Rs.20000/- or not.

for reference i am typing the bear act here,

where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.

I agree with Fatema. Sec. 40A(3) shall not apply 

HI M balavenkatesh

U r right dat if v pay >20000 in cash to one person in a day than total amount vl b disallowed...

Bt wen u pay for seperate bills nd each bill is <20000 than there in no point 40(A)(3) is attracted...so d opinion given above by all is correct....

Dear Fatema

I think you are wrong because Accoarding to Section 40A (3) if an assessee incurs any expenditure in respect of which payment in excess of Rs. 20000/- is made otherwise than by an account payee cheque or an account payee bank draft, 100% of such expenditure will not be allowable as deduction.

Hence, if Cash paid in excess of Rs. 20000 for an expenditure of less than Rs. 20000 will also disallowable.

This Section refers payment in respect of expense, doesn't to expenditure

Yes i agree with suri