40 (a) (3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2011 Sir

I have an issue regarding 40 (A)(3) payments.

The assessee doing real estate business, while purchasing the properties have paid cash in excess of 20000/- and registered the document with concerned registrars.

Could any body suggest me the ways and means of avoiding 40 (A)(3) disallowance

thanks in advance

CA Pabbaraju Laxmi Narasimha

CA Pabbaraju Laxmi Narasimha (Expert)
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29 October 2011 The section you quoted is wrong.
It should be 40A(3) not 40(a)(3).

Since the assessee is engaged in the real estate business. Expenditure incurred by him is claimable under sec 30 to 37.

Payment inexcess of rs.20000 will attract disallowance of whole amount.

Rgards
Laxmi narasimha

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