cash payments more than 20000
This query is : Resolved
10 December 2009
What is the exact law for " cash payments of more then 20000"
Is it aggregation (sum up) per day per person
Or,
Is it per person per year
Example:
If I purchase goods of Rs. 100000 from Mr. X,
(1)
Can I pay cash 20000 x 5 = 100000
in different dates of the same financial year to Mr. X.
Or
(2)
I can pay only Rs. 20000 Cash in the same financial year to Mr. X. and rest by cheques.
Please guide
Is it aggregation (sum up) per day per person
Or,
Is it per person per year
Example:
If I purchase goods of Rs. 100000 from Mr. X,
(1)
Can I pay cash 20000 x 5 = 100000
in different dates of the same financial year to Mr. X.
Or
(2)
I can pay only Rs. 20000 Cash in the same financial year to Mr. X. and rest by cheques.
Please guide
CA Balram Sharma
(Expert)
10 December 2009
section 40A(3) is applicable in this regard,
this section will aplicable when more than 20000 to a person in a sigle day.
the whole amount will be disallowed,
CONDITION IS
FOR SINGLE PERSON IN A DAY,
this section will aplicable when more than 20000 to a person in a sigle day.
the whole amount will be disallowed,
CONDITION IS
FOR SINGLE PERSON IN A DAY,
CA Balram Sharma
(Expert)
10 December 2009
EX,
SUPPOSE YOU PAY RUPEES 25000 TO A ON 10-12-2009.
THN WHOLE AMOUNT WILL BE DISALLOWED,
IF YOU PAY
15000 AS ON 10-12-2009
AND 10000 AS ON 15-12-2009
IN THIS CASE RS 25000 WILL BE ALLOWED
SUPPOSE YOU PAY RUPEES 25000 TO A ON 10-12-2009.
THN WHOLE AMOUNT WILL BE DISALLOWED,
IF YOU PAY
15000 AS ON 10-12-2009
AND 10000 AS ON 15-12-2009
IN THIS CASE RS 25000 WILL BE ALLOWED
CA Ravi Sisodia
(Expert)
10 December 2009
Agree with Mr.balram
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