Sec 40a(3)

it is not a expenditure.it is a security deposit.

SEC 40 A(3) APPLIES FOR EXPENDITURE.NOT SECURITY DEPOSIT.

it is not a expenditure.it is a security deposit.

SEC 40 A(3) APPLIES FOR EXPENDITURE.NOT SECURITY DEPOSIT.

Agreed with CA Parveen Singh ji, that ist applicable on the expenditure and not on receipts, security deposit.

As per section 40A(3) of the Income Tax Act, 1961 " Disallowance of 100 % expenditure exceeding Rs 20,000/- if payment is made by any mode other than account payee cheque or draft ". therefore , the section uses the word expenditure and then only it would be disallowed . So,it does not  apply to security deposit..

sec 40A(3) is apply only on revenue expenditure not on capital expenditure so disallow,,,,,

As per section 40A(3) of the Income Tax Act, 1961 " Disallowance of 100 % expenditure exceeding Rs 20,000/- if payment is made by any mode other than account payee cheque or draft ". therefore , the section uses the word expenditure and then only it would be disallowed . So,it does not  apply to security deposit..

SECTION 40A(3) APPLIES TO EXPENDITURE ONLY & NOT TO SECURITY DEPOSIT