The above answer is for one day for one bill in name of one person for whose named the bill is generated.

 

Ashwani

agree with all if bill paid by credit card than all amount allowalbale as deducation

 

and if u deduct tds on next bill than its allowed

have a another option for you may be this expenses allowed 

you have need to book to this exp on hole value a single bill as like a credit bill and after you will pay cash voucher in two or three different date of less than 20000.00  but in this case you need to to convert this bill cash memo to credit memo than you allowed hole exp 

i request to all of you please clear me also if i have wrong ?????????

Full amt. disallowed

Originally posted by : Dattatray
	Hiii... Sudhanshu   Ya.. it is disallowed.. but you can do onething ask hotel to provide 5 to 6 bills.... if u have paid cash against 1 bill then it is completely disallowed.. better to ask for 5 to 6 bills... I hope this will suffice u ?? Have a nice day !

(a) demand from hotel 4-5 bills for that exp

(b)every bill should be of the amount of 20000 or less ;and

(c)date of every bill should be different

      than whole of the expenditure shall be allowed

agree with all...

Agree wd all members. This amt will be disallowed.

To illustrate with an example, let us assume a taxpayer has incurred an expenditure of Rs 40,000/-. The taxpayer makes separate payments of Rs 15,000/-, Rs 16,000/- and Rs 9,000/- all by cash, to the person concerned in a single day. The aggregate amount of payment made to a person in a day, in this case, is Rs 40,000/-. Since, the aggregate payment by cash exceeds Rs 20,000/-, Rs. 40,000/- will not be allowed as a deduction in computing the total income of the taxpayer in accordance with the proposed amendment. The proviso to the proposed sub-section (3A) provides that in certain prescribed cases and circumstances the provisions of proposed sub-sections (3) and (3A) shall not apply. This amendment will take effect from 1st April, 2009 and will accordingly apply in relation to assessment year 2009-10 and subsequent assessment years. Accordingly Rule 6DD is amended accordingly.CBDT Notification No. 97/2008 [F.NO. 142/10/2008- TPL], Dated: October 10, 2008

You can try cover the payment in following exceptions u/s 40a(3)

 

Illustrative situations of ‘exceptional circumstances’ - All the circumstances in which the conditions laid down in rule 6DD(j)† would be applicable cannot be spelt out. However, some of them which would seem to meet the requirements of the said rule are :

(a) the purchaser is new to the seller; or

(b) the transactions are made at place where either the purchaser or the seller does not have a bank account; or

(c) the transactions and payments are made on a bank holiday; or

(d) the seller is refusing to accept the payment by way of crossed cheque/draft and the purchaser’s business interest would suffer due to non-availability of goods otherwise than from this particular seller; or

(e) the seller, acting as a commission agent, is required to pay cash in turn to persons from whom he has purchased the goods; or

(f) specific discount is given by the seller for payment to be made by way of cash.

Full amount of Rs. 51,200/- will be Disallowed for the Previous Year and will be added in the Computation of Income of the previous year as "disallowance Under Section 40A(3)" and thereby assessable to tax. 

Thanks 

Merry X-mas