Section 40a(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2014 .I m a teacher. suppose i paid Rs.30000 as an Advance for meeting Excursion expense on 5/09/2014.The actual expense is Rs.60000 on 20/09/2014.Whether this expense is disallowed under section 40A(3) or not? If it is Disallowed please kindly clarify ,how this is disallowed??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 September 2014 You paid Rs. 30,000. as advance no problem it is not an expenditure which will be disallowed. Out of Rs.60,000. for any expenditure cash payment is made exceeding Rs. 20,000. to a single person in a single day, only that expenditure will be disallowed.