Applicability of Sec-40A(3) or 269SS&T for own construction

 As Per provision of income tax, if any amount paid in excess of Rs. 20,000 towards expenditure, entire  amount will be disallowed. but in personal construction there is no question of claiming deduction of expenditure. So we can pay amount in excess of rs. 20,000.

Dear Krishna Prasad ,

The provision of amounts above 20000 of payments is applicable to business expenditure only . Even if u pay Rs. 20000 or above in cash for Capital Assets of business , there isn't any disallowance/penalty. (40A3)

269SS relates to loans , again not ur case.

As u have paid cash for ur House's construction (Personal exp) , there is no applicability of 40A(3) n it , so no penalty.