Disallowance u/s 40A (3)
This query is : Open
03 February 2010
M/s ABC Pvt Ltd company makes a payment of Rs. 100,000/- in cash towards purchase of Foreign exchange from an Authorised Dealer in Foreign Exchange. Is it an allowable expense?
03 February 2010
Yes, The transaction is allowed as per Rule 6DD of Income tax Rules
03 February 2010
Yes, The transaction is allowed as per Rule 6DD of Income tax Rules
04 February 2010
Thank YOu for your reply Sir but as per Rule 6DD of IT Act 1961 such transactions are allowed only to authorised foreign exchange dealer. So I request you to clear my confusion and let me know whether even companies are also allowed such expenses in excess of Rs. 20,000/-
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