Cash payment disallowed

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Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2011 hi,,,,

my name is umeshkumar,
i hv umesh industries, my query is for cash payment disallowed

i m paying rs. 30K to 60K via bearer cheque, Do it disallowed or count as payment ???

pls explain it

thanks..to ....alll who are watching my query...

sharma.ctc@gmail.com

sharma.ctc@gmail.com (Expert)

11 October 2011 As per my opinion..

Bearer cheques are also one type of cash withdrawn.. and if you make payment like this than it will be counted as Cash payment.

So it will be disallowed...

Wait and see what the experts reply on this.

visu iyer

visu iyer (Expert)

11 October 2011 Strictly speaking, it is disallowed...
Your accountant know better way of recording it..!!

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2011 thanks....u all

is there any circular or notification on it...????

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)

12 October 2011 Further, post-dated bearer cheques when issued along with cash payments made in one day, the post-dated cheques need not be considered for the purpose of section 40A(3), as the payments against them would be made on the future date. But, ordinary bearer cheques issued in excess of ` 20,000 upon payment, would be caught within the ambit of section 40A(3). This has been the crux of the decision in H.A. Nek Mohd. & Sons v. CIT (1982) 135 ITR 501 (All).
so bearer cheques are taken as cash

CA MANOJ GUPTA
JODHPUR
09828510543

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