section 40A(3)

A ltd. purchases goods on credit from B ltd. on may 10. 2009 for16000 and on may 30, 2009 for15000.  the total payment of31000 is made by a crossed cheque on june 1, 2009.....wat is d tax treatment???

Replies (5)

reply my dear friends.......as soon as possible.....

I think ur question is not clear,what do u want to know. First of all,there are no 40A(3) application,rest make it clear wat u wanna know

dear ye section 40A(3) ki problem h......one day payment exceeding 20000........now i think u understand....

Section 40A(3)(a) of the Income-tax Act, 1961 provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction.,,

 

plz solve my problem as soon as possible.....

Originally posted by : vipul jain

Section 40A(3)(a) of the Income-tax Act, 1961 provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction.,,

 

plz solve my problem as soon as possible.....

as per the above saidsection it applies only when a payment is made for "an" expenditure during a single day. In ur case although the payment is made by crossed cheque,it is made on two different invoices(i guess),so it will be allowed as deduction

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