section 40A 3

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2009 WE HAVE MADE A PAYMENT OF RS 23500.00 IN CASH IN A DAY in the Asstt Yr 2007-08 A.O. WILL ADD 23500.00 OR RS 3500.00 UNDER SECTION 40A 3.

Heera Nahariya

Heera Nahariya (Expert)
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23 December 2009 presently whole amount is disallowed u/s section 40A(3) if payment is made in excess of Rs. 20000/- in cash to a same person in a day.

Hence whole amount of Rs. 23500/- will be disallowed by A.O.

Ram Avtar Singh

Ram Avtar Singh (Expert)
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23 December 2009 now its amended in case of transporter you can pay to transporter up to 35000/=in a day. its applicable from 1.10.2009.

Other case theresh limit is 20000/=

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Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2009 Thnx, You write Presently but the payment was made in Asstt. Yr 2007-08.

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2009 Thnx Ram Avtar Ji,

Payment to transporter of Rs 23500/- in a day were made in Asstt. Yr 2007-08

Heera Nahariya

Heera Nahariya (Expert)
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23 December 2009 I am very sorry that I dint pay attention to the Assessment Year. Here is the answer...

total disallowance would be (23500-20000)=3500*20%=700