alleryStart learning →Cash payment to one person in a day above what sum is disallowed under 40A(3)?
ARs 35,000
BRs 5,000
CRs 10,000
DRs 20,000
Answer & Solution
Correct answer: C. Rs 10,000
Section 40A(3) disallows expenditure where payments to a person in a day exceed ten thousand rupees otherwise than by prescribed banking modes.
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