03 September 2015
Payment for an expenditure in cash in excess of Rs. 20000/- is disallowed under section 40A(3). There is one of the exception as under:
Payment made to government (Central or State) in excess of limit as above, provisions of section 40A(3) are not applicable.
Now my question is whether government company is covered by the above provision or only government is covered?
If government company is covered, then whether electricity bill paid to that government company is covered by the exception or not.
09 September 2015
Sorry by oversight I have taken it as TDS. Such payment of electricity bill in cash will be allowed. See the link. www.simpletaxindia.net/2010/04/electricity-bill-paid-in-cash-40a3.html
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