Salary payment above Rs. 10,000/-

Section 40A(3)(a) of the Income Tax Act provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs 10000 in a single day otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft or through use of electronic clearing system, shall not be allowed as a deduction.

Section 40A(3)(b) also provides for deeming a payment as profits and gains of a business or profession if the expenditure is incurred in a particular year but the payment is made in any subsequent year in a sum exceeding Rs 10000 otherwise than by an account payee cheque or by an account payee bank draft or through use of account clearing system.

i agree vth rakesh
......

agree with rakesh