Sec 40a (3)

if u recoard in one day it will add to in your income 

and you have to pay additional  tax on it 

Reduction in Limit under section 40A(3A) Cash payment limit has been reduced from Rs. 20000 to Rs. 10000  If any person pays in cash exceeding Rs. 10000 in a day shall not be allowed as deduction in computation of Income from "Profits and gains of business or profession

Dear Shuhaibh,

In reference to your question, following two situations can be possible:

(1) You have paid a sum of Rs. 30,000 in a single day to a single person.

(2) You have paid a sum of Rs. 30,000 to a single person on different dates (each payment doesnot exceed Rs. 10,000)

If your situation falls under (1) above, then entire amount of Rs. 30,000 would get disallowed under section 40A(3) and would be added to your PGBP Income

If your situation falls under (2) above, nothing would be disallowed under section 40A(3).

Hope that above explanation clears your doubt.

Thanks and Regards,

Dhrunil Bhatt

Thanks Dhruth, but if we can adjust so, what is the validity of the sec 40A(3), even if we paid Rs 30000 in a single day , we can record it as 10k each in 3 days in our books of account.I think there is no bill to bill checking regarding cash payment from Income tax department.