When a cash payment of ₹ 15,000 is made on 10th May, 2020 towards purchase of raw material effected in earlier years, i.e. on 5th June, 2018, the amount liable for disallowance u/s 40A(3) would be-
A. ₹ 15,000
B. ₹ 30,000
C. ₹ 45,000
D. ₹ 60,000
Answer:B
When a cash payment of ₹ 15,000 is made on 10th May, 2020 towards purchase of raw material effected in earlier years, i.e. on 5th June, 2018, the amount liable for disallowance u/s 40A(3) would be-
A. ₹ 15,000 B. ₹ 30,000 C. ₹ 45,000 D. ₹ 60,000