40A(2)

This query is : Resolved 

10 May 2009 i want to know whether the following expenses are disallowed u/s 40A(3)

there are 3 different bills:
dated amount
15.01.09 15000
19.01.09 12300
28.01.09 18000

the assesse makes a single payment in cash for rs.45300 on 31.09.09

10 May 2009 yes

10 May 2009 In my opinion and careful reading of the law, it would not be disallowed.


10 May 2009 it is not the bill amounts , but the amount of payment which is determining factor.since the payment is more than rs 20000, it can be disallowed u/s 40(A)(3)

10 May 2009 Sec.40(A)(3) says payment of "an expenditure"
Here since there are different bills they would not be disallowed and this has been clarified by the department.

11 May 2009 dear nitin

please provide me the clarification circular number to further enlighten the issue.

11 May 2009 with due respect to all experts
m more confused now

11 May 2009 Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.


12 May 2009 i have not got my answer yet,there is lot of contradiction

13 May 2009 the expenses will be disallowed



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