Section 40a(3)

Section 40A(3) shall be applied only if both the conditions are satisfied i.e. Cash Payment exceeds 20,000/- & Biil amount exceed 20,000.

So in my case it is not applicable. Since bill amount doesn't exceeds Rs. 20000

Originally posted by : Sanjay Joshi
	So in my case it is not applicable. Since bill amount doesn't exceeds Rs. 20000

Sec 40A(3) does talks about the payment for expenditure to a single person in a single day (may be for multiple bills also) exceeds 20,000/35,000.

So your transaction falls within ambit of 40A(3).

But i think biils wouold be clubbed if they are of same date otherwise not.

ACCORDING TO ME , SEC. 40A(3) WOULD NOT APPLY IN UR CASE 

It is Travell agency 

Bill no. 829 to 842 dated 7 March, 2014 

Amount: 95,780

I AGREE WITH RAMSAI NEELAM.

SINCE PAYMENT IN SINGLE DAY TO SINGLE PERSON EXCEEDS RS 20000 SEC BECOMES APPLICABLE

Originally posted by : Sneha Dagli
	I AGREE WITH RAMSAI NEELAM. SINCE PAYMENT IN SINGLE DAY TO SINGLE PERSON EXCEEDS RS 20000 SEC BECOMES APPLICABLE

I agree with Sneha Dagli !!

Section 40a(3) becomes applicable when aggregate of payment made to a single party in a day exceeds Rs 20,000. Hence, no matter the payment is made on different invoices, sec 40a(3) becomes applicable in your case.

Provisions of sec 40A(3) are applicable if :

1. The aggregate of payments in Cash, made to a Single Person in a Single Day for the Same work exceeds Rs. 20000.

2. The limit is Rs. 35000 in case of Goods transport agency.

3. If payment is made to single person in single day but for Different works, then the payments in cash will not be aggregated (since only payments for same work is aggregated)

Since in your case, the amount in respect of Cash payments exceeds the given limits, the provisions of the section are applicable.

Since the CASH Payment to the Single Party on a single day Exceeds Rs.35,000/- Sec.40A(3) is applicable. Dont worry about single bill r multiple bills. Sec.40A(3) is speaking about only CASH Payment to the single person on a single day.

if the billls contains different dates then sec 40 a(3) will not apply....or else 40 a (3) will be applied.