Just want to confirm if any amendment has been made in section 40A(3) of IT Act, raising the cap of permissible cash expenditure from Rs.20,000 to Rs.35,000.
It is proposed the limit for disallowance of expenditure made in the case of transporters otherwise than by an account payee cheque or account payee bank draft from RS.20,000/- to Rs.35,000/-
The proposed amendment will apply to transactions effected on or after the 1st October,2009.
It is proposed that any institution (having receipts of more than rupees one crore) has to make an application for seeking exemption by filing application or on before 30th September of the succeeding financial year.
An amendment is made to include certain activities within the ambit of provisions relating to charitable purpose in the Income-tax Act.
CAclubindia
