Cash payment exceeding 20k
This query is : Resolved
14 November 2014
Dear , can we purchase re-sale goods by cash more than Rs 20,000/- per day . section 40A will apply or not. please explain the section.
14 November 2014
As per section.40A(3) of the income tax act, the expenses by cash more than Rs.20000/- will be disallowed subject to exceptions as per rule 6DD
Section 40A(3)(a) of the Income Tax Act provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs. 20,000/- in a single day otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft or any other bank mode shall not be allowed as a deduction.
Section 40A(3)(a) of the Income Tax Act provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs. 20,000/- in a single day otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft or any other bank mode shall not be allowed as a deduction.
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