Amounts inadmissible u/s 40A(3) - [Clause 17(h)] (Cash Payments)

As per Section 40A(3), a Payment or an aggregate of the Payments to a person during a day exceeding Rs.20,000/  paid other than by crossed Account Payee Cheque or crossed Account Payee Bank draft are required to be given. Such amounts in excess of Rs.20000/- are not allowed as business expenditure in computation of the profit/loss under the head income from business or profession. However, certain allowed deductions referred in Clause (a) to (l) of Rule 6DD are required to be considered by the Auditors while extracting such information.

To view the report for the Amounts inadmissible u/s 40A(3) – Clause 17(h),

Go to Gateway of Tally > Audit & Compliance > 44AB Audit > Amounts debited to P&L a/c > Amounts inadmissible u/s 40A(3)

The Cash Payments screen displays all the cash payments made during the relevant financial year. It also displays the Ledger name along with the details of Highest and Lowest amount paid and total Unaudited Vouchers under each ledger.

Tax Audit Rules Setup for Cash payments

To set the Tax Audit Rules for Amounts inadmissible u/s 40A(3) - (Clause 17(h), refer to Audit Features section.

Cash Payments screen with Tax Audit Rules

The Cash Payment screen displays the Vouchers which exceed the amount as specified in the F11: Audit Features screen.

Configuration options in Cash Payments screen

To configure the default display for the Cash Payments summary screen, click on F12: Configure or press F12 key

Button options in the Cash Payments screen

Ctrl+F9: Masters

The user can exclude expenses (Ledgers) which are allowed under Rule 6DD by clicking on Ctrl+F9: Masters button or pressing on Ctrl+F9 keys.

To skip the Ledgers,

Note: When the dates are specified in the Applicable From and Applicable To field, the Ledger is skipped for the specified period. However, if no dates are specified the ledger is skipped forever.

F7: Show Pending

To view only those vouchers for which audit is not done, press F7 or click on the button F7: Show Pending.

F8: Show Audit Amt

To view the audited vouchers with the Audit amount, press F8 or click on the button F8: Show Audit Amt

F9: Show Skipped

To view the skipped Vouchers those are skipped during the Auditing as Allowed Expenditure,

 

F4: Group

By default, Tally.ERP 9 displays all the ledgers under Primary Group. If the user wants to view the Cash Payments made under a particular Group,

To view the Vouchers (Ledger Vouchers) under the each ledger, press Enter on the required Ledger name.

F10: Range wise

For details, click Ledger Vouchers for Range Wise.

F: Form 3CD

Click on F: Form 3CD or press Alt+F to fill in Form 3CD for Clause 17. For more details, refer Form 3CD.

C: Clause Reference

For details, refer Clause Reference.

B: Bank Summary

Click on B: Bank Summary button or press Alt+B keys to view the Bank Payments report. The user can drill down to the Bank Payments made from the selected Bank and convert them to Bearer Cheque. For more details, refer to Bank Summary section.