TaxTMI 
TaxTMI 
pls provide the provision for accounting tratment under sec 40(a)3 of Income Tax Act, 1961.
Accounting treatment under sec 40(a)3
07 Oct 2009 
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Disallowance under Section 40A(3) affects deductibility of payments made otherwise than by account and requires threshold analysis.
Section 40A(3) affects deductibility of business expenditures where payments are made otherwise than by account and exceed the statutory threshold; determining disallowance requires examining the nature and mode of payment and whether the threshold is breached. (AI Summary)
Section 40A(3) affects deductibility of business expenditures where payments are made otherwise than by account and exceed the statutory threshold; determining disallowance requires examining the nature and mode of payment and whether the threshold is breached. (AI Summary)