Sec 40a(3)
Querist : Anonymous
An assessee who purchase goods on credit worth Rs 1,20,000/- & make the payment of the same in cash on diff. dates below Rs 20,000/-. Does it is hit by the provision of sec 40A(3)?
Please advice....
Dear Chackrapani Sir Please Clarify if i am wrong with any Case law or notification if available.
If, pays Rs. 20,000/- in 5 installments for same invoice, it will treated as single transaction and will disallowed under section 40A(3).
It is very dangerousness after qualifying CA, you are giving wrong answer to someone. Sec. 40A(3) is an very important section of IT Act, 1965 and every CA using this section while assessing the income. But, you are not updated.
No excuse to you...
Thanks in advance.
As per section 40A(3) with effect from asst.year 2009-10, where the assesses incurs any expenditure in respect of which a payment or aggregate of payments made to a person IN A DAY EXCEEDS RS. 20000/- no deduction shall be allowed in respect of such expenditure.
it is cleared from the above, in your case 40A(3) does not attract, since you are making payments below Rs 20000/- in DIFFERENT DATES.
and it is also cleared in Notification no SO 2431(E) dated 10th Oct 2008. applicable with effect from A.Y 2009-2010
OK.......
Querist : Anonymous
Request to please resolve the query by some senior experts.
Thanks
Querist : Anonymous
The conclusion is that "no one is 100% complete perfect and updated knowledge about taxation and audit matters, this forum is to share information, knowledge with other peoples. If any one have posted/replied wrong then it does not meant that you replied in that bad way. It can be replied in polite and wise manner.
So please take care about commenting others in future.
Regards
Hence in it is not applicable.
I will give you the case law as soon as possible.
sorry, please Do not think that Seniors only will have the knowledge, some time this type of confusion will be happen to Seniors also which i have seen in my Articleship.
But, sec. 40A(3) is an important section. while assessing your client income (irrespective of individual or corporate) you should apply the section. 40A(3). while uploading the Form 3CD, you should specify the details of expenditure diss-allowed u/s. 40A(3).
Even a member working in industry also should use this section, while computing the taxable income.
you know a chartered accountant must have a knowledge of latest important updates. Why institute conduting seminars, workshops etc?
Do you know why institute mandated the CPE hours?
Do you know, now-a-days, number of CA's are facing un-employment. Why??
Thanks in Advance.
Querist : Anonymous
It does not sound good the way u comment on him. Please keep dignity & respect to others.
Further i request you to please give reference to the case law/rules/etc supportive your view on sec 40A(3).
Thanks & Regards
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