CASH PAYMENT ABOVE RS.20000/-
This query is : Resolved
mansi dedhia
(Querist)
21 January 2010
CASH PAYMENT ABOVE RS.20000/- IS IT DISALLOWED AND WHAT ARE ITS REASONS?
21 January 2010
As per Section 40A(3, if following conditions are satisfied then 100% expenditure gets disallowed.
 The assessee incurs any expenditure which is other wise deductible under other provisions of the Act for computing Business/ Profession.
 A payment in respect of such expenditure, or part thereof exceeds Rs. 20,000/- in a day to a person
 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
 The assessee incurs any expenditure which is other wise deductible under other provisions of the Act for computing Business/ Profession.
 A payment in respect of such expenditure, or part thereof exceeds Rs. 20,000/- in a day to a person
 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
(Querist)
22 January 2010
sir can u pls tel me wat r the certain specific exceptions defined in Rule 6DD?
CMA Ramesh Krishnan
(Expert)
22 January 2010
1.Payment to Bank
2.Payment to Govt
2.Payment to Govt
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