u/s 40A(3) Cash Pament

Dear Sunil

If the payment of Rs 15000 per day but billing are in separate vouchers than it may not attract sec 40A(3). Hence eligible for claiming deduction in P&L A/c

From

Umashankar Vaishnav

Gwalior

CA Final New Course May 2010

Section 40 A(3) of Income Tax Act, 1961 will attract only to a transaction which exceeds Rs.20,000/- "per a day". by means of  otherwise than by an account payee cheque.

so, as far as ur querry is concerned the section will not attract.

Sec 40A(3) not attracted and allowed.

Section 40(A)(3) is applicable only when the threshold limit of Rs. 20000 exceeds in a single day and so here 40 a 3 is not applicable...and hence full amount shall be allowable as deduction...

40A(3) is not applicable

section 40A(3) will not attracted on your query