Section 40A(3)

[PANKAJ GROVER]

Dear Sir,

In case Foreign Brach Spent money in cash (In Foreign Currency) equivalent to more than Rs 20,000, whether Section 40A(3) will be attracted and the same  will be disallowed.

Regards

RAPG & Co.

[Guest]

I think it should be disallowed as the payment is released more than Rs.20000/- whether to pay an indian citizen or to any other.

 

Thanxx...&...Regards.....

Raj

AI Summary

Cash payment limit under Section 40A(3) may disallow foreign branch cash disbursements over the prescribed threshold. Whether a cash payment by a foreign branch in foreign currency equivalent exceeding the statutory cash limit attracts Section 40A(3) and is therefore disallowable; the forum reply advises such payments should be disallowed regardless of the payee's residence or status.