banner_ad

Cash payment morethan rs.20,000/- against different invoices

This query is : Resolved 
Profile Image

Profile Image

(Querist)
17 November 2011 Dear Experts,

I am aware that payment of expenses in cash more than Rs.20,000/- to a single party in a single day will be disallowed u/s 40(4)(3) of Income Tax Act, 1964.

Please let me know, whether it is applicable if paid against different invoices.

For Ex: - ABC Ltd. raised 3 bills of expenses nature for Rs.15,000/-, 18,000/- & 16,000/- Dated 17/11/2011. All the bills were paid by creating different cash payment vouchers Dated 17/11/2011. Will the expenses be allowed or disallowed?

Thanks in Advance.
Profile Image

Rajnish Singh

Profile Image

Rajnish Singh (Expert)
17 November 2011 Dear Sidhardh,


it will also come in preview of section 40(4)(3) . If customer take a cash than it will disallowed.
Profile Image

G.Ramesh

Profile Image

G.Ramesh (Expert)
17 November 2011 Agreed with Rajnish
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
18 November 2011 Since the aggregate payment per day exceeded the limit, disallowance under section 40A(3) of the IT Act,1961 attracts.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details