Amount exceeding rs.20000/-

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2012 An assessee deducted TDS of Rs.Two Lacs. He deposited Rs.Two Lacs CASH in Mr.X's saving a/c who used his internet banking to make the payment on the assesse's behalf on the same day. Does this transaction contravenes any IT provision. The assessee is under Tax Audit.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 July 2012 Tax payments by cash exceeding Rs.20000 will not attract sec.40A(3)

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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11 July 2012 1.Payment of 200000 by internet banking considered as payment other than cash mode.

2. Secondly Deposit of cash exceeds Rs 50000
in bank A/c prohibited unless assessee furnish his PAN no except in case of Agriculture Income.