LIVE GST Audit Course by CA Sachin Jain. Register Now!!

If payment made more than 20k????

sudheer (CA.Student ) (100 Points)

25 January 2011

Hi Freinds i want to known if payment made in cash more than 20000/-rs in cash in a single day what are the consequences will effect????......

Reply
Follow
Share

6 Replies

Vinit (CA Final ) (188 Points)
Replied 25 January 2011

Any cash payment exceeding Rs. 20000/-in a single day is disallowed u/s 40(A)3 of the I.T Act.1961. However the limit is Rs. 35000/- in case of payment for Plying , Hyring and leasing of goods carriage.

1 Like

Lalit Kumar (Vice President ) (2213 Points)
Replied 25 January 2011

Disallowed.. means that u cannot claim tat amount as an expense.

CA Antima Jain (Job) (70 Points)
Replied 25 January 2011

Originally posted by : Lalit Kumar
	Disallowed.. means that u cannot claim tat amount as an expense.

Yes, as per sec 40(A)3 of income tax act if any paymnet is made in excess of rs. 20000/- to a single person in a single day against any expenditure then such expenditure is not allowed.... it means that we can't claim such amount as an expenses. but from 1st oct. 2009 this limit is Rs. 35000/- in case of payment for leasing, hiring and plying of goods carriage.

1 Like

siri (CFO) (174 Points)
Replied 25 January 2011

hi sudheer,

as per sec 40(A)3 of income tax act if any paymnet is made in excess of rs. 20000/- to a single person in a single day against any expenditure then such expenditure is not allowed.... it means that we can't claim such amount as an expenses. but from 1st oct. 2009 this limit is Rs. 35000/- in case of payment for leasing, hiring and plying of goods carriage.
as per sec.269SS: Mode of taking or accepting certain loans & deposits from any other person if that amount or aggeregater of that amount exceed rs.20,000/- then that must be received in cheque or an account payee bank draft only..

as per sec.269T:-mode of repayment of loan or deposit:- the amount paid aggeregate payment exceeds rs.20,000/- then that payment must be in cheque or a/c payee bank draft only.....

for sec.269SS & 269T auditor has to give report on the same.....

Arun Gupta (Job) (71 Points)
Replied 25 January 2011

PLZ HELP ME........ITS CS-EXECUITIVE -COMPANEY LAW CASE STUDY

A DEMERGER SCHEME WAS APPROVED BY THE SHAREHOLDERS, SECURED AND UNSECURED CREDITORS, THE SCHEME WAS NEITHER IN VIOLATION OF ANY LAW NOR AGAINST PUBLIC INTEREST , HOWEVER AS 14 WAS NOT ADOPTED , WHETHER THE SCHEME CAN BE SANCTIONED?

HELP ME...............PLZ

CA Kanveer Singh Dhingra (Merchant Banker) (193 Points)
Replied 26 January 2011

Yes, as per sec 40(A)3 of income tax act if any paymnet is made in excess of rs. 20000/- to a single person in a single day through a "SINGLE INVOICE" against any expenditure then such expenditure is not allowed....

1 Like