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.
CMA Ramesh Krishnan
(Expert)
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
