Cash Payment exceeding Rs. 20000/- through Bank payment
This query is : Resolved
24 November 2008
Whether we can deposit Cash of Rs. 25,000/- on behalf of our customer to his account through Anywhere Bank or Core Banking System. whether it is an allowable expenditure under Rule 6DD of Income Tax Act?
24 November 2008
Following payment thro' banking system is allowed even if it is more than Rs.20K:
1. any LC arrangement
2. a mail or telegraphic trn
3. book adjustment from any a/c in a bank to any other a/c in that or nay other bank
4. bill of exchange made payable only to a bank
5. use of electronic clearing system thro' a bank a/c
6. credit card
7. debit card
1. any LC arrangement
2. a mail or telegraphic trn
3. book adjustment from any a/c in a bank to any other a/c in that or nay other bank
4. bill of exchange made payable only to a bank
5. use of electronic clearing system thro' a bank a/c
6. credit card
7. debit card
24 November 2008
Yes based on the decision in Sri Renukeswara Rice Mills Vs ITO (2005) 278 ITR 77 (Bang Tri)
24 November 2008
Yes it is an allowable expenditure. You can deposit.
25 November 2008
Yes you can deposit. It will not be disallowed
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