i want to know if a person make payment of expenditure in cash like: salary more than 20000 in cash but payment is made in installment i.e. on 26.05.2011 RS. 11000, 27.05.2011 Rs. 8000, 28.05.2011 Rs. 6000 in cash , is this payment is allowed in income tax act. u/s 40a(3)
also clarify section is applicable for all kind of expenditures....
21 February 2012
Section.40A(3) applicable on single day payment more then Rs.20000 by cash to same person . so in case different dates, section.40(A(3) not apply. please refer rule 6DD for full details