Disallowance for cash payment under section 40 (A) 3

Disallowance for cash payment under section 40 (A) 3

According to Income Tax Act 1961 all expenditure incurred in respect of business is allows for computing  business income during the relevant period . There is restriction  for where the assessee incurs any expenditure in respect of which a payment or aggregate of payment made to a person in a day otherwise than by an account payee cheque drawan on a bank or account payee bank draft or use of electronic payment througha bank exceed Rs.10,000.

Leave a Reply

Your email address will not be published. Required fields are marked *