Recent Amendment in sec 40 (A)3; Rule 6d

Hi to all.... Down under is the recent amendment to Rule 6d with regard to Sec 40(A)3..

Can any one have the full text of the same.. I had googled and got only the below part.. also explain me the applicability etc.,

 

Below is the part text i got.

PAYMENT OF MORE THAN RS 20,000/- (AMENDEMENT IN RULE 6d OF THE INCOME TAX ACT

or aggregate of payments exceeding twenty thousand rupees may be made by a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft.

RULE BEFORE AMENDMENT

The main part of the Rule earlier read as,No disallowance under clause (a) of sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under clause (b) of sub-section (3) of section 40A where any payment in a sum exceeding twenty thousand rupees is made otherwise than by an account payee cheque drawn on a bank or account payee bank draft in the cases and circumstances specified hereunder, namely :-

RULE AFTER AMENDEMENT

Now the amended Rule reads as,No disallowance under sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section ( 3A ) of section 40A where 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 in the cases and circumstances specified hereunder, namely:-
 
Replies (3)

Dear L Pradeep,

Drafting of Section 40A (3)

Before Amendment section was as under :-

Section 40A (3) (a)

Section 40A(3) (b)

then Proviso

After amendment :-

Section 40A (3)

Section 40A (3A)

Proviso

Further Proviso

Now about the amendmet:- After amendment if any person pays any amount exceeding Rs. 20000/- for any expenses in a DAY then it will be disallowed. earlier it was at any point of time not aggregate amount of full day.Now the payment of full day will be considered for the purpose of disallowanses.

Further in the case of Transporter the amount is Rs. 35000 instead of Rs. 20000.

Thank you so much!!

My client has made payment in cash to the transporter on same day but for different trips which crossed the amount of Rs.35000/- to one transporter, Is that allowable

for e g 1 trip         12950/-

            2nd trip     12950/-

            3rd trip      12950/-

 total exceeding rs.35000/0

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