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u/s 40A(3) Cash Pament

FEMSG (Business) (49 Points)

24 November 2009

If paymnet Rs.15000/- per day in CASH for 10 days - Tatal Rs.150000/-. will it attrace section 40A(3) ?

Please not that payee -not covered u/s 6DD

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6 Replies

CA Umashankar Vaishnav (Service in Cement Manufacturing Organization) (1069 Points)
Replied 24 November 2009

Dear Sunil

If the payment of Rs 15000 per day but billing are in separate vouchers than it may not attract sec 40A(3). Hence eligible for claiming deduction in P&L A/c

From

Umashankar Vaishnav

Gwalior

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machender (student) (190 Points)
Replied 24 November 2009

Section 40 A(3) of Income Tax Act, 1961 will attract only to a transaction which exceeds Rs.20,000/- "per a day". by means of otherwise than by an account payee cheque.

so, as far as ur querry is concerned the section will not attract.

ashish gupta ( student) (1922 Points)
Replied 24 November 2009

Sec 40A(3) not attracted and allowed.

Harshal (Article Assistant ) (182 Points)
Replied 24 November 2009

Section 40(A)(3) is applicable only when the threshold limit of Rs. 20000 exceeds in a single day and so here 40 a 3 is not applicable...and hence full amount shall be allowable as deduction...