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
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,
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
10 December 2009
Agree with Mr.balram
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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Management System (IMS)
- EPF FULL & FINAL RULES IN 2026
- Eway bill generation from place other than registeted
- GST rate and HSN code for sale of racing horses
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- 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
