sec 40(A)3

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Arunashree (Querist)
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10 February 2010 Sir,
Pl clarify

1) If the cash is paid to any person as advance for expenses exceeding Rs.20,000/- whether it attracts Sec. 40(A)3 ?

2) If the cash is paid to an employee as advance/loan exceeding Rs.20,000/- whether it attracts Sec. 40(A)3 ?

Please reply as soon as possible.

Wani

Selvakumar Selvaraj

Selvakumar Selvaraj (Expert)
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10 February 2010 1.If cash paid in advance against single expenses if exceeds Rs.20000/- is disallowed under the Section 40A(3).

2.If the loan amount exceeds Rs.20000/- by cash then it should be added to the income from other source to the employee under section 56 of IT ACt. But 40A(3) will not attract