cash payments

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amar delo (Querist)
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23 August 2017 In a company x ltd if A is one of the director and she withdrew cash 50000 will it not attract sec 40(A)3 where present limit in a day is only 10000.

ABHISHEK GARG

ABHISHEK GARG (Expert)
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23 August 2017 Mere withdrawal of cash from Bank Account doesn't attract disallowance u/s 40a(3).
Expenditure of 10000 or more in cash in a single day (with certain exceptions) amounts to disallowance u/s 40a(3)
HERE EXPENDITURE IS IMPORTANT.

amar delo

amar delo (Querist)
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23 August 2017 its not withdrawal of cash from bank a/c direct cash payment but in narration its mentioned as drawings entry is A current a/c To cash a/c

ABHISHEK GARG

ABHISHEK GARG (Expert)
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23 August 2017 You have mentioned it as private limited Company and there is no concept of Drawings in Pvt; ltd. entity.
If it is Director's Remuneration then it is disallowed and if it is Loan or Advances etc to director then there is no need to check 40a(3)

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