Section 40A(3)before amendment said that "Any payment exceeding Rs 20000 and made in cash on a single invoice on a single day will be disallowed for deductions"

However, with effect from april 1, 2009 the word "Aggregate" has been added to avoid splitting of cash payments.

My question is that if an assessee made cash payments exceeding Rs. 20000 on a single day to a contractor (in the year 2004-05)but receipts were taken by the assessee on split amounts...then will the exenditure be disallowed???
Wat contention shoud the assessee give to avoid this disallowance?

Can anyone provide me with some case laws on this issue.

1. Can we change the method of accounting from Cash based to accural based. If yes, do we need prior approval from the income tax authorities or do we need to inform them about the changes.

2. Can the books kept on the cash based accounting be assessed under accural based accounting by the assessing officer.

3. Do we have to deduct TDS for the expenditure accured but not paid during the year under cash based accounting.

Awaiting an earliest reply.

Thank you in advance.

Dear Sir

I got one Transporter bill in which along with Transportation charges Passenger And Goods Tax is charged. The Transporter is saying TDS will not be deducted on Passenger and Goods Tax. Is it right? Is there any cicular for this just like circular for TDS not to be deducted on Service Tax charged on Rent.

Regards
Vishal

I came to know that entry tax payment is not mandatory for Orissa because of pending court decisions.
In case of Jharkhand, entry tax payment was stopped by high court order but there is no suitable informations regarding state of Bihar.
Is there any body, who can provide proper informations regarding Orissa & Bihar states.

I want to Know that A Child Income Club with his parents. but if his parents is not live then he Win 10 Lack Prize. is this income is taxable if yes, how?

Dear Sir/madam,

In my bank a/c i have fixed deposit for which bank has deducted tds on interest. but in my personal I. tax file tax will be nil.
please help

what is the rate of charging Depreciation on car which is purchase in 2009. before march 2009 . what's about new tds returns

Hi sir
In the previous year ending 31.03.2008 we had purchased Land 8 lakhs for setting up of business in other state, The same showed in balance sheet under fixed assets as Land. In the current year we made payment to contractor around 7 lakhs for construction of buildings. He given a bill containing, details of materials/labours/expenses--ete towards our payment. My question is What is the treatment of payment towards construction for building under income tax or shall we take it as Expenses, If Expenses which head of expenses we have to show in balance sheet

We are a manufacturer exporter. We have given Letter of undertaking and renewing it yearly from 2003 onwards. During 2007-08 by oversight the LUT expired during June 31st and subsquently it was renewed only in September 10th.

Now the department is asking ( SCN given) us to pay the duty for the exports made during the period between July 1st to September 9th.

My doubt is obtaining LUT is only a procedure and there is no revenue loss to the government. Moreover we have the proof of export with us. If they insist to pay the duty, whether we can apply for refund or recredit based on the submission of proof of export. Please clarify the things at the earliest

Thanks in advance

Hi,

Our client is paying Bonus to there employees in may 09 & TDS on it to be made, but employees are requseting to deducted the TDS on Bonus across the year 2009-10. Is this possible ?

Please reply with along provisions, if any.

Regards,
Sree :)