Can i make cash payment more than rs. 20,000 in a day?
This query is : Resolved
09 January 2016
Sir,
Suppose i have to make payment of 3 bills in one day of same company amounting Rs. 15,000 , 17,000 and 19,000 respectively. So, total cash payment is Rs. 51,000. Can i make payment as per Section 40A(3)?
Suppose i have to make payment of 3 bills in one day of same company amounting Rs. 15,000 , 17,000 and 19,000 respectively. So, total cash payment is Rs. 51,000. Can i make payment as per Section 40A(3)?
09 January 2016
Dear
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
Hence in you case the payment is to one person in a single day hence disallowed.
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
Hence in you case the payment is to one person in a single day hence disallowed.
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