14 February 2009
A COMPANY HAD PAID A SUM OF 25000 IN CASH FOR AN EXPENTURE TO A RELATIVE OF DIRECTOR OF COMPANY.THE AMT WAS UNFAIR TO THE EXTENT OF RS.6000 SO THAT FAIR VALUE IS RS.25000-6000=19000 HOW MUCH EXPENDITURE WILL BE DISALLOWED AS PER SEC 40A(2)i.e expenses on actual payment AND 40A(3)ie cash payments excedding Rs 20000
14 February 2009
we are paid rs.25000 as a expenses but exp are allowed rs.19000/- rs.6000/-is disallowed so your claim for exp are rs.19000/- this are below rs.200000/- only rs.6000/-is added in your income
CAclubindia
