section 40 A(3)

This query is : Resolved

vatsal (Querist)
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25 November 2010 sir
if a single transaction of Rs. 45000/- occured in a day and being paid by the assessee in three days in installment of
Rs.15000/-
Rs.18000/-
Rs.12000/-

whether the expenditure is allowed as a deduction as per the Section 40 A(3)

CA Sanat Pyne

CA Sanat Pyne (Expert)
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25 November 2010 YES.

CA. Aryendra

CA. Aryendra (Expert)
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25 November 2010 Yes it will be allowed

Expenses dissallowed when payment made to a person " in a day" otherwise than the account payee cheque exceeds Rs. 35000.00 w.e.f. 1.10.2009

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vatsal

vatsal (Querist)
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25 November 2010 but Aryendra sir the particular transaction is of 45000 and the payment of cash is allowed in more than one day????

CA Sanat Pyne

CA Sanat Pyne (Expert)
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25 November 2010 YOU HAVE MENTIONED THAT PAYMENT HAS BEEN MADE IN THREE DAYS.

THE MAIN CRIETERIA IS TRANSACTION VALUE AND PAYMENT SHOULD BE MORE THAN 20000/- IN A DAY

CA Sanat Pyne

CA Sanat Pyne (Expert)
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25 November 2010 YOU CAN VISIT THIS LINK
https://www.caclubindia.com/experts/cash-payment-522525.asp