23 April 2023
Sec. 40 A(3): Where any expenditure in respect of which payment is made in excess of Rs. 20,000 at a time otherwise than by Account-payee cheque or draft, 100% of such payment shall be disallowed.
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 Rs. 20,000 (Rs. 35,000 where payment is made for plying, leasing or hiring goods carriages), no deduction shall be allowed in respect of such expenditure. Where payment is made for plying, hiring or leasing goods carriages, the payment shall have to be made by account-payee cheque or account-payee draft if the amount of payment exceeds Rs. 35,000 instead of Rs. 20,000 applicable in all other cases.
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