If I make payment to same party for 3 times in a single day at cash as follows:
1st time 5000
2nd time 3000
3rd time 6000, the above amounts paid to the party will be disallowed under sec 40a3 right?
Sec 40(A)3- Multiple payment
Replies (9)
Quick Summary
I do not know of any precedent but I think that words ".....assessee incurs any expenditure in respect of which a payment or aggregate of payments made..." seem to cover payment/ aggregate towards a particular expenditure incurred against a particular (singular) transaction. It could be argued that even if payment made in total exceeds 10k, if it was made in connection with separate transactions, may not run foul of provisions.
Per day per person : 10,000
So it is disallowed u/s 40A(3)
So it is disallowed u/s 40A(3)
You can pay only Rs. 10000 in a day to single person.
@ Renu,
Multiple payment is not the criteria. Multiple days may considered for exemption
Multiple payment is not the criteria. Multiple days may considered for exemption
That is the same thing that 10000 /- per person per day as you mentioned earlier.
But both are not same
As per section 40(A)3 limit is 10000 per day per transaction.
No.Per day per person
@ Gaurav it is per day per person
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