Section 40a(3)

This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
06 June 2017 can we do cash payment exceeding Rs.10000 in a day to different persons for a particular thing .For example Repair of car expenses incurred Rs.35000 like for purchasing Tyers from A for Rs.10000, Battery Purchase from B for Rs.6000 so on.Does the total expense will be allowed for get disallow

06 June 2017 Total will be allowed because limit applies to payment made to a party at one time anr not to the aggregate of the payments.

06 June 2017 40A(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day,
-otherwise than by an account payee cheque drawn on a bank or
-account payee bank draft, exceeds twenty thousand rupees,
- no deduction shall be allowed in respect of such expenditure

Conclusion: Different Persons shall not be count. a Person shall be taken for this Section 40A(3).




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries