14 February 2012
as per provision of 40A(3), any expenditure incurred by assessee in respect of which a payment or aggregate of payments made to a person in a day otherwise than by an accountant payee or bank draft exceeds Rs.20,000, no deduction shall be allowed. So your example ll be hit by this provision.. And no deduction ll be available as payment is made to one person exceeding Rs.20000. In a single day