40a(3)

This query is : Resolved

rohit kumar (Querist)
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13 August 2012 Is Limit of Rs. 20000 U/S 40A(3) also applicable for any individual. Means if any indivdual makes any payment towards any expenditure for more than 20000 will it be disallowed or not.

CA Rahul Gupta

CA Rahul Gupta (Expert)
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13 August 2012 The word " Assessee" has been used for the above Provision.If an assessee makes payments to a person exceeds Rs.20000/ for any expenditure, shall be disallowed.
in your case, it will be disallowed.

neeraj

neeraj (Expert)
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13 August 2012 Yes it is applicable to all assesees

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CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)
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13 August 2012 YES.DISALLOWED..
IF YOU WANT TO CLAIM BUSINESS EXPENSES.YOU HAVE TO AVOID TO MAKE PAY IN CASH.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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13 August 2012 Collect the amount in 2 or more days(per day less than Rs. 20000)in order to claim the expenditure.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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13 August 2012 yes, individual is also covered in this. but if he has business income.

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)
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13 August 2012 It is very well applicable to Individuals

Naresh Dharia F.C.A.

Naresh Dharia F.C.A. (Expert)
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14 August 2012 Just to mention, clarify the status of the word "Individual" in ur query. In case the answer is in nature of personal purposes..then Income Tax Act provisions do not apply...
Otherwise, as suggetsed/advised,follow accordingly.
Thx

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Arun Biyani

Arun Biyani (Expert)
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16 August 2012 yes its applicable to all the assessee.