Cash Payment >Rs.20,000/-
This query is : Resolved
10 March 2008
Should the Traders/ Contarctors/ Transporters showing profits u/s 44 AD/ 44AE or 44AF should also take care while paying for expenses more than Rs.20,000/- in cash.
10 March 2008
YES,PAYMENT EXCEEDING RS20000/- SHALL BE DISALLOWED IN SUCH CASES ALSO
10 March 2008
Yes because in these sec only sec. 30 to 38 is exempt sec. 40A(3) is not exempted.
so. take care of cash payment of 20000 or more.
so. take care of cash payment of 20000 or more.
10 March 2008
When income is estimated on gross profit rate, no disallowance can be made - When the income of the assessee was computed by applying a particular gross profit rate and when no deduction was allowed in regard to the purchases of the assessee, there would be no need to look into the provisions of section 40A(3) and rule 6DD(j) - CIT v. Banwari Lal Banshidhar [1998] 229 ITR 229 (All.).
10 March 2008
yes
10 March 2008
Yes section 40A(3) will apply to cases covered under section 44AD/AE/AF.
10 March 2008
Thanks everybody.
Yes, technically sec 40A(3) will apply. But how far it has teeth for an AO, as in such instances assesse can always claim that he has already taken care of such payments > 20,000, and while considering the Profit declared and rate of Profit (5 % or 10%) he/she has already adjusted the impact of non-allowable expenses u/s.40A(3).
CA Sampat Jain's reply/suggestion is also important. Experts, Please Guide.
Yes, technically sec 40A(3) will apply. But how far it has teeth for an AO, as in such instances assesse can always claim that he has already taken care of such payments > 20,000, and while considering the Profit declared and rate of Profit (5 % or 10%) he/she has already adjusted the impact of non-allowable expenses u/s.40A(3).
CA Sampat Jain's reply/suggestion is also important. Experts, Please Guide.
11 March 2008
Thanks C.A. Sampat jain
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
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Rental income gst and it purpose
- EPF FULL & FINAL RULES IN 2026
- Foreign lottery ticket bought online from India: legality, tax and consequences
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Gift Received from nonblood relative
- Reprocessing of rectification order AY 2025-26
- 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
