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Cash Payment exceeding Rs. 20000/- through Bank payment

This query is : Resolved 
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(Querist)
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?
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Ravikumar.G

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Ravikumar.G (Expert)
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
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
24 November 2008 Yes based on the decision in Sri Renukeswara Rice Mills Vs ITO (2005) 278 ITR 77 (Bang Tri)
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CA Chaitanya

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CA Chaitanya (Expert)
24 November 2008 Yes it is an allowable expenditure. You can deposit.
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CA. AMIT AGARWAL

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CA. AMIT AGARWAL (Expert)
25 November 2008 Yes you can deposit. It will not be disallowed
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