Cash payment more than rs 20000
This query is : Resolved
05 March 2013
we are doing payment of more than rs 20000 in a day to a single party in cash for purchasing a diesel.
whether the above expenses will be disallowable as per income tax act.
they do accept A/c payee chq. so we r doing cash payment.
whether the above expenses will be disallowable as per income tax act.
they do accept A/c payee chq. so we r doing cash payment.
CA Prashant Gupta
(Expert)
05 March 2013
if your income is under business & profession head then this exp will be disallowed
U/S 40A(3)
U/S 40A(3)
CA Mahavir Shah
(Expert)
05 March 2013
If you are making payment exceeding Rs.20000 it will attract Sec 40A(3).
it means if any assessee pays amount exceeding Rs.20000 in cash it will be disallowed.
If supplier is not accepting A/c payee Cheque you can make arrangement with supplier for either Advance Payment or opening running account, this will resolve your problem.
it means if any assessee pays amount exceeding Rs.20000 in cash it will be disallowed.
If supplier is not accepting A/c payee Cheque you can make arrangement with supplier for either Advance Payment or opening running account, this will resolve your problem.
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