Under section 40A(3) which of the following payment for an expenditure incurred would not be admissible as deduction from business income

CS Executive · Tax Laws and Practice · PYQS · June 2015
Under section 40A(3) which of the following payment for an expenditure incurred would not be admissible as deduction from business income
(A) ₹15,000 paid in cash to a transporter
(B) ₹15,000 paid in cash to a dealer in the morning and ₹10,000 paid in cash to the same dealer in the evening
(C) ₹40,000 sent through NEFT to the bank account of the dealer for goods purchased
(D) ₹19,000 paid through bearer cheque to the dealer for goods purchased.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax

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