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Discussion > Income Tax >

Sec 40 a (3)

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student

[ Scorecard : 29]
Posted On 16 February 2012 at 21:17 Report Abuse

According to Sec 40 a (3) cash payment cannot exceed 20,000 /-        BUT IF

 

Suppose if there is public holiday ( means in banking sector )  then

Can I make payment above 20,000 /- Rs in cash in such day........if YES then why?

CWA Students most welcome
 



RAKESH
CA

[ Scorecard : 2171]
Posted On 16 February 2012 at 22:59

yes the payment can be made in cash. but condition is that the public holiday is out of unexpected reasons then it is allowed. if u knew that it is public holiday and knowingly u r making the payment on that day then it is not allowed. 




CMA Ramesh Krishnan
Cost & Management Accountant

[ Scorecard : 41334]
Posted On 16 February 2012 at 23:01

Yes. as per rule 6DD,   where the payment was required to be made on a day on which the banks were closed either on account of holiday or strike, then section.40A(3) not apply



Tony John
CA Final

[ Scorecard : 3081]
Posted On 17 February 2012 at 14:09

Originally posted by : RAKESH

yes the payment can be made in cash. but condition is that the public holiday is out of unexpected reasons then it is allowed. if u knew that it is public holiday and knowingly u r making the payment on that day then it is not allowed. 



Total thanks : 1 times


pooja
student

[ Scorecard : 25]
Posted On 17 February 2012 at 19:19

Yes... Rule 6DD will apply in this case and you can very well make payment above 20000 also...!!!



m nagar
articled

[ Scorecard : 48]
Posted On 17 February 2012 at 19:25

Yes this is an exception for Section 40A(3)-RULE 6DD.. 



ashwin
student

[ Scorecard : 29]
Posted On 17 February 2012 at 20:40

Thank u Friends for ur replysmiley



CA PRAVEEN SINGH
MANAGER ACCOUNTS

[ Scorecard : 2221]
Posted On 18 February 2012 at 14:07

yes Read exception of  sec 40 A(3)...

Rule 6 DD



jagadish hiremath
advocate & tax consultant

[ Scorecard : 79]
Posted On 19 February 2012 at 12:10

Please ensure that the payment is necessarily required to pay on holidays as mention in Rule 6DD.


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