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
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Booth for sales promotion
- Regarding ITR filing with more value than showing in AIS/TIS
- F & O PROFIT REPORTING FOR AY 2026-27
- Type of Capital Gain
- Exiting partner in partnership firm in gst portal
- Average Cost Of High Quality Diamonds
- Difff in ais receipts and gst turnover
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
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
