section 40A(3)

meenakshi (Audit Manager) (81 Points)

06 November 2008  

Hai Friends,

             Somebody clarify my doubt. Section 40A(3) of the income tax act disallowes any expenditure for which payment in excess of Rs 20000 is made in cash. Does it apply only to expenses debited in profit and loss account or includes payment made for purchase of fixed assets too. Please reply immediately.