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Section 80JJAA read with 40A(3)
Suppose if i pay salaries to employees in my first year of business in cash ₹18000 each and claim deduction under section 80JJAA. Whould this amount of 18000 will be disallowed under section 40A(3)? And deduction under section 80JJAA will be allowed at the same time?
Replies (5)
It would be not eligible for 80JJAA deduction because one of the conditions of this section is to make payment through bank or other prescribed mode and not cash irrespective of amount of salary.
But i have read that emoluments paid in cash would be eligible for deduction in first year of new business
Yes.. it is allowed in first year
And thats what i am asking... Will it be disallowed under section 40A(3)
As per Section 40A(3) No Expenses exceeding Rs 10,000/- is allowed in cash including Salary.
So, it's disallowed u/s 40A(3).
So, it's disallowed u/s 40A(3).
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