40A(3)

Page no : 2

Ansari (ca final) (444 Points)
Replied 09 September 2010

Originally posted by : CA.G.Muguntha Narayanan
	Dear Riya, The section applies to salaries also, coz its a business expenditure. However, there is an exception in Rule 6DD, which reads as follows, where the payment is made by an assessee by way of salary to his employee after deducting the income-tax from salary in accordance with the provisions of section 192 of the Income-tax Act, 1961, and when such employee— (A) is temporarily posted for a continuous period of fifteen days or more in a place other than his normal place of duty or on a ship; and (B) does not maintain any account in any bank at such place or ship;