Accountant
21 Points
Joined May 2011
Section 40A(3) of Income Tax Act 1961 provides that 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 cheques drawn or account payee bank draft exceeds Rs. 20,000/-, no deduction shall be allowed in respect of such expenditure.
However with effect from 01.09.2009, in the case of payments made for plying, hiring or leasing goods carriage, the amount shall not exceed Rs. 35,000/-.