alleryStart learning →Section 40A(2) disallows payments to relatives only to the extent?
APaid after year end
BPaid in cash above limit
CExcessive or unreasonable
DNot recorded in books
Answer & Solution
Correct answer: C. Excessive or unreasonable
Section 40A(2)(a) disallows only the part judged excessive or unreasonable against fair market value or business needs.
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