Sec 40A(3)

Tax queries 1508 views 33 replies

Applicability of sec40A(3) 1 day 1bill but does not exceed 20000,,,,

therefore ,,u have 2 bill both does not exceed 20000.

hence sec40A(3) does not applicable..

both the expense are allowed

Replies (33)

Applicability of sec40A(3) 1 day 1bill but does not exceed 20000,,,,

therefore ,,u have 2 bill both does not exceed 20000.

hence sec40A(3) does not applicable..

both the expense are allowed

I agreed with Bhavik

Single or aggregate payments in respect of allowable expenditure in excess of Rs.20,000 other than by way of A/c payee cheque or A/c payee demand draft to a single person on a single day.  

Dear Friends, 40A(3) is about disallowance of expenditure, for payment by cash, in a single day to a person, an amount exceeding Rs. 20000/-. The section does not talk about whether the payment is made for the same nature of expenditure or expenditures of different natures. Therefore, even if payment exceeding Rs. 20000/- is made for different bills or different kinds of expenditures, if the payment is made to a single person, the amount so paid, which will otherwise be allowed as expense will be disallowed.


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