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Section 40A(3)_Cash payment
Reliance industries paid 30000 to a transport company in a day. Is the expense Disallowed as per proviso.
Replies (12)
Quick Summary
No, it will not be disallowed as for transporters cash limit is 35000 rupees in a day, so for 30000 rupees it is allowed u/s 40A(3), no problem
No disallowace, as for Transporter limit is Rs. 35000
Disallowance while computing profits and gains from business and Profession
expenses greater in cash of 30000 is disallowed and will be considered to be added to profit.
expenses greater in cash of 30000 is disallowed and will be considered to be added to profit.
Mukherjee JI Please read the section again
Sabyasachi please read the section
No, it won't be disallowed when payment to transporter is upto Rs.35,000
Yes, it won't be disallowed as the limit is Rs. 35,000 for transporters
I assumed its paid in cash.
the section tells that if its Rs
35000 in a single contract or Rs. 1 lakh in a day.
I ASSUMEE ITS PAID IN CASH.
SO HENCE ITS NOT DISALLOWED.
the section tells that if its Rs
35000 in a single contract or Rs. 1 lakh in a day.
I ASSUMEE ITS PAID IN CASH.
SO HENCE ITS NOT DISALLOWED.
Your Assumption is wrong, as there is no limit of Rs. 1,00,000 for Cash Payments
Rs. 1 lakh in a year.
The querist has not mentioned anything about the mode of payment.
Cash payment @ heading
Mukherjee Sir, please mention the section where 1,00,000, limit mentioned
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