CASH PAYMENT ABOVE RS.20000/-

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mansi dedhia

mansi dedhia (Querist)
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21 January 2010 CASH PAYMENT ABOVE RS.20000/- IS IT DISALLOWED AND WHAT ARE ITS REASONS?

Professional Careers Academy

Professional Careers Academy (Expert)
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21 January 2010 As per Section 40A(3, if following conditions are satisfied then 100% expenditure gets disallowed.
ï‚§ The assessee incurs any expenditure which is other wise deductible under other provisions of the Act for computing Business/ Profession.
ï‚§ A payment in respect of such expenditure, or part thereof exceeds Rs. 20,000/- in a day to a person
ï‚§ The payment mentioned in condition two is made in CASH or BEARER CHEQUE.

However, the above provision has certain specific exceptions defined in Rule 6DD.

Reasons:-
In order to avoid assesses from charging fictitious expenses.

regards,
CA Jatin Bansal

mansi dedhia

mansi dedhia (Querist)
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22 January 2010 sir can u pls tel me wat r the certain specific exceptions defined in Rule 6DD?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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22 January 2010 1.Payment to Bank
2.Payment to Govt

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