Cash payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2012 cash payment of instalment for vehicle purchased. whether allowed or not as per i.t. act and what are its audit aspects?

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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15 May 2012 There is no problem form cash payment of vehicle installment loan. The Audit aspects are that you need to maintain the proof of payment and the loan statement for verification.

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2012 thanks Mr.Amol what if it exceeds the limit specified in IT act

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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15 May 2012 Even if it exceeds the amount specified in the Act, such amount shall not be disallowed. Because, it is towards capital asset. Section 40A(3) applies only to expenditure.