Cash payment exceeding ₹ 20,000/-
This query is : Resolved
Rohit Meharia
(Querist)
08 March 2017
Hi, Please guide me that whether a firm can pay remmuneration to partners Rs 25000/- each in Cash? The amount is within the permissible limit of Section 40(b).
CA Shubhanshu Jain
(Expert)
08 March 2017
Hiii, kindly note that as per section 40A(3) amount paid in excess of Rs. 20000 towards expense is disallowed
even in case of partnership firm salary as per section 40(b) is expense for firm and if more than 20000 is paid in cash, same will be disallowed as per 40A(3).
even in case of partnership firm salary as per section 40(b) is expense for firm and if more than 20000 is paid in cash, same will be disallowed as per 40A(3).
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