When a cash payment of ₹ 15,000 is made on 10th May, 2019 towards purchase of raw material effected in the earlier year, i.e., on 5th June 2018, the amount liable for disallowance u/s 40A(dA), in the A.Y. 2020-21 would be –
A. Nil
B. 100% of payment
C. 20% of such payment
D. 30% of such payment
Answer:B
When a cash payment of ₹ 15,000 is made on 10th May, 2019 towards purchase of raw material effected in the earlier year, i.e., on 5th June 2018, the amount liable for disallowance u/s 40A(dA), in the A.Y. 2020-21 would be –
A. Nil B. 100% of payment C. 20% of such payment D. 30% of such payment