Sec 40a(3)

Roshan A

Chartered Accountant

458 Points Joined October 2009

CA PRAVEEN SINGH

MANAGER ACCOUNTS

2277 Points Joined August 2011

it is not a expenditure.it is a security deposit.

SEC 40 A(3) APPLIES FOR EXPENDITURE.NOT SECURITY DEPOSIT.

CA PRAVEEN SINGH

MANAGER ACCOUNTS

2277 Points Joined August 2011

it is not a expenditure.it is a security deposit.

SEC 40 A(3) APPLIES FOR EXPENDITURE.NOT SECURITY DEPOSIT.

KARANDEEP,CA,B.Com,CS FNL

JOB

457 Points Joined March 2010

Agreed with CA Parveen Singh ji, that ist applicable on the expenditure and not on receipts, security deposit.

Neeta Kishorbhai Jethmalani

Article assistant

53 Points Joined January 2012

As per section 40A(3) of the Income Tax Act, 1961 " Disallowance of 100 % expenditure exceeding Rs 20,000/- if payment is made by any mode other than account payee cheque or draft ". therefore , the section uses the word expenditure and then only it would be disallowed . So,it does not apply to security deposit..

Dilkhuash Kumar Ray

Audit Assistant

27 Points Joined February 2011

sec 40A(3) is apply only on revenue expenditure not on capital expenditure so disallow,,,,,

Gulshan Kumar

Professional Accountant

119 Points Joined June 2010

As per section 40A(3) of the Income Tax Act, 1961 " Disallowance of 100 % expenditure exceeding Rs 20,000/- if payment is made by any mode other than account payee cheque or draft ". therefore , the section uses the word expenditure and then only it would be disallowed . So,it does not apply to security deposit..

C.A SUVAJIT SAHU

CA ( In Practice )

708 Points Joined January 2012

Originally posted by : CA PRAVEEN SINGH
	it is not a expenditure.it is a security deposit. SEC 40 A(3) APPLIES FOR EXPENDITURE.NOT SECURITY DEPOSIT.

Jiral Savla

Senior

35 Points Joined September 2010

SECTION 40A(3) APPLIES TO EXPENDITURE ONLY & NOT TO SECURITY DEPOSIT

CA AMAN KAMALIA

CA

88 Points Joined March 2010

IN THE ABOVE CASE 40A(3) DOES NOT APPLY BUT SEC-269SS GET ATTRACTED BECAUSE SECURITY DEPOSIT TAKE THE NATURE OF ADVANCE AND THEREFORE AS PER SEC-269SS ANY ADVANCE IN EXCESS OF 20,000 MUST BE MADE BY ACCOUNT PAYEE CHEQUE OR DRAFT.