Cash Payment in Excess of Rs. 20000/-
This query is : Resolved
25 October 2008
Good Evening Sir,
As per Section 40(A)3 of Income Tax Act, if Payment is made through CROSSED Cheque(not A/c Payee Cheque) is it treated as allowable expenditure if the payment exceeds Rs. 20000/-
As per Section 40(A)3 of Income Tax Act, if Payment is made through CROSSED Cheque(not A/c Payee Cheque) is it treated as allowable expenditure if the payment exceeds Rs. 20000/-
25 October 2008
As per section 40(A)(3)(a) expenses will be disallowed.
25 October 2008
Kewal,
If The payment is through Crossed Cheque/ A/C Payee Cheque/DD. The Expenses is Allowed.
Hence in your case there is no problem.
Cheque crossed has become A/C Payee Automatic
If The payment is through Crossed Cheque/ A/C Payee Cheque/DD. The Expenses is Allowed.
Hence in your case there is no problem.
Cheque crossed has become A/C Payee Automatic
25 October 2008
section 40(A)(3) has been amended. Now if a payment exceeding 20000/- is allowed under income tax act if it is made through a account paypee cheque only.
25 October 2008
I am agree with Mr. Sachin Kumar, it is amended last year, cross cheque can be endorsed to anybody but cross cheque with language "account payee only" cant be endorsed
25 October 2008
How can one verify whether its crossed or a/c payee at the time of assessment?
26 October 2008
AO may always call for evidence from bank
28 October 2008
I agree with sagar
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
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Gift Received from nonblood relative
- EPF FULL & FINAL RULES IN 2026
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- FTS Taxable under 115A
- Rental income gst and it purpose
- Management System (IMS)
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
