Cash payment morethan rs.20,000/- against different invoices
This query is : Resolved
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.
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.
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.
it will also come in preview of section 40(4)(3) . If customer take a cash than it will disallowed.
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- 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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
