Section 40A(3)_Cash payment
Ayushi Dubey (7 Points)
11 April 2021
Reliance industries paid 30000 to a transport company in a day. Is the expense Disallowed as per proviso.
12 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 11 April 2021
No, it will not be disallowed as for transporters cash limit is 35000 rupees in a day, so for 30000 rupees it is allowed u/s 40A(3), no problem
Ankit Neema
(2742 Points)
Replied 11 April 2021
No disallowace, as for Transporter limit is Rs. 35000
sabyasachi mukherjee
(27713 Points)
Replied 12 April 2021
Disallowance while computing profits and gains from business and Profession
expenses greater in cash of 30000 is disallowed and will be considered to be added to profit.
expenses greater in cash of 30000 is disallowed and will be considered to be added to profit.
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 13 April 2021
Sabyasachi please read the section
Puneet Matha
(32 Points)
Replied 14 April 2021
No, it won't be disallowed when payment to transporter is upto Rs.35,000
CA Puja Sharma
(Chartered Accountant)
(5010 Points)
Replied 14 April 2021
Yes, it won't be disallowed as the limit is Rs. 35,000 for transporters
sabyasachi mukherjee
(27713 Points)
Replied 14 April 2021
I assumed its paid in cash.
the section tells that if its Rs
35000 in a single contract or Rs. 1 lakh in a day.
I ASSUMEE ITS PAID IN CASH.
SO HENCE ITS NOT DISALLOWED.
the section tells that if its Rs
35000 in a single contract or Rs. 1 lakh in a day.
I ASSUMEE ITS PAID IN CASH.
SO HENCE ITS NOT DISALLOWED.
Ankit Neema
(2742 Points)
Replied 14 April 2021
Your Assumption is wrong, as there is no limit of Rs. 1,00,000 for Cash Payments
sabyasachi mukherjee
(27713 Points)
Replied 14 April 2021
Rs. 1 lakh in a year.
The querist has not mentioned anything about the mode of payment.
Ankit Neema
(2742 Points)
Replied 15 April 2021
Mukherjee Sir, please mention the section where 1,00,000, limit mentioned
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