sec 40A(3)

Hi, According to section 40a(3), it deals with cases where the cash payment can exceed RS.20,000 by way of cash [RULE 6DD],

Payment made to banks, payment made to LIC comes under Rule 6DD.

hope u r clear now

Expenses come under from sec28 to 43 are disallowed

agree with rg

Only deductions u/s 28-43 are disallowed u/s 40A(3).. LIC premium is allowed for two reasons.. One it is specifically excluded by 6DD and other is it is covered by 80C.

Ur answer to first question is, repayment/acceptance of loan is covered by 269 SS and 269 T. As per legal principles, specific provision prevails the general.. 40A (3) is general.. So disallowance can be made only under 269.. Under which is full amount paid in cash is disallowed.. (Even if someone has paid Rs. 21,000 towards interest and no sum towards principal, the section which will be attracted is 269 T and not 40A(3))

plz make it clear in simple words will payment of unsecured loan & interest thereon be disallowed or not........

and in which circumstances these r disallowed u/s 269,269SS,269T..........

thanx in advance........