What is the provision of Section 40A(3)?
Subject
FAQs on Disallowance of cash expenses or limit on cash transactions
Answer
If the payment (or aggregate of payments) for an expenditure to a person in a day exceeds Rs. 10,000 and it is made by any mode other than account payee cheque or bank draft or electronic clearing system through a bank account or electronic modes prescribed in Rule 6ABBA, no deduction shall be allowed for such expenditure.