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Section 40A(3) cash transaction limit

monirul sk (CMA) (78 Points)

05 February 2021  

Whether disallowance of cash transaction will applicable if expenditure in a day more than 10000 and bill amount of that particular day more than 10000, but payment in cash in 2 days?

Suppose expense in a day of Rs 18000, bill amount 18000 but payment made in 2 days 10000 and next day 8000.

 3 Replies

Sourav (Student) (23912 Points)
Replied 05 February 2021

If payment in cash exceeds 10000 rupees in cash in a single day then such extra amount will be disallowed

sachin sharma (53 Points)
Replied 05 February 2021

Monirul sk ji section 40a(3) state that if you are incurred an expenditure of more than 10000 in cash for single bill / day / person then only your expenditure is disallowed as a whole. but if you make payment of single bill in excess of 10000 different days less than 10000 then it 's not disallowed

CA. Aditya Goel (Chartered Accountant) (664 Points)
Replied 18 February 2021

if paid in two days as mentioned in your query then this expenditure in cash is allowed

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