Cash payment in excess of rs.20000

karthik minna (CA Practice ) (24 Points)

19 September 2012  

I need to know whether section 40A(3) disallowance is applicable for cash purchases in excess of Rs.20000. In 40A(3) payment made in relation to expenditure is disallowed. Please clarify me whether payments made sundry creditors in excess of Rs.20000 in a day is disalllowed or not.