Sec 40 a (3)

Pages : 1

ashwin
student

[ Scorecard : 29]

Posted On 16 February 2012 at 21:17

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.