Cash payment exceeding 20000

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Sairam (Querist)
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10 September 2012 Hello
I am doing audit of a partnership firm..they are maintaining an account called "G.K.S TRAVELS ADVANCE A/C"...against that they have made several cash payments to that party exceeding 20000 by way of cash..pls help me in this regard whether i have to disallow those payments in xcess of 20000

Thanks in advance

Amol S Joglekar

Amol S Joglekar (Expert)
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11 September 2012 why do you need to disallow these? You need to report these. Let allowance/ disallowance be done by the concerned ITO.

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Sairam

Sairam (Querist)
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12 September 2012 But sir in that firm there is one CA..who says since it is used for travelling purposes and paid by cash upto 35000 is exempt...pl reply sooon as possible

Amol S Joglekar

Amol S Joglekar (Expert)
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12 September 2012 You can give the same answer to the CA. The Income Tax Act is same for CA as well as NON CA. In fact, being CA, he/she is competent enough to know the importance of REPORTING.

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