Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

40(a)(3) of i t act

naveen kumar (7 Points)

09 September 2020

what is the limit of disallowance under section 40(a)(3) of I t act??

Reply
Follow
Share

1 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 09 September 2020

Section 40A(3)(a) of the Income Tax Act provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs. 10,000/- in a single day (35,000 for transport charges) otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft or through use of electronic clearing system, shall not be allowed as a deduction.