Motor vehicle insurance premium paid in cash in excess of Rs 10000/- would hit by Sec 40A(3).

Reply—Section 40A(3) of Income Tax Act, 1961, provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs. 10000/- in a single day otherwise than by an account payee cheque or any other banking channel, shall not be allowed as a deduction. Thus cash payment is allowable upto Rs. 10,000/-.

Therefore payment in respect of insurance premium will also covered under section 40A(3), cash payment in excess of Rs. 10,000/- will not allowable as expenses.