40A(3) & 194C

Page no : 2

CA.Shaleen Srivastava (CA , CWA*, Bcom(H)) (2004 Points)
Replied 03 July 2009

The following sub-sections (3) and (3A) shall be substituted for sub-section (3) of section 40A by the Finance Act, 2008, w.e.f. 1-4-2009 :

(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of paymentsmade to a person in a day, otherwise than by an account payeee cheque drawn on a bank or account payeee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure."

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vaibhav (M.Com. CA ) (178 Points)
Replied 03 July 2009

Dear Dhruv

As per new amendment

Any Expenditure payment made to a person in a day exceeding Rs.20000/- in respect of a single bill or more than one bill otherwise than A/c payee cheque or Bank draft shall be disallowed.

so far your case is concerned Bills were raised on different dates, and amount of each bill does not exceed Rs.20000/-.so nothing shall be disallowed though payment made exceeding Rs.20000/-.

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 04 July 2009

Dear ,There are two bill so don't worry but pay with different Vrs & 94 C will not be applicable as single bill have to be of 20K,

ashish (partner) (24 Points)
Replied 26 September 2009

I WISH TO ASK ABOUT SUBMISSION OF FORM 15J UNDER SECTION 194C OF THE IT ACT . IF ONE FAILS TO SUBMIT THE DETAILS TO THE INCOME TAX WHAT WOULD BE THE IMPLICATON.