Question 106 of pgbp module of VG sir

If an employer is paying salary by bearers cheque of 12,500/- .Would that expense be allowed or disallowed u/s 40A(3)?

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Quick Summary
This discussion explores the tax implications of paying employee salaries via bearer cheque exceeding £10,000. It questions whether such an expense would be disallowed under Section 40A(3) of the Income Tax Act. The provided solution suggests it's disallowed for Section 80JJAA deductions but not necessarily for Section 40A(3), prompting a need for careful review of the specific question details.

Disallowed being salary of more than 10000 paid not by way of account payee chque

But according to Solution in the book, it is disallowed for computing deduction u/s 80JJAA (being new employees in the company) but not disallowed u/s 40A(3)

Need to read the question first for this clarification .

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