Expenditure in excess of cash 20000

This query is : Resolved

Manasa sai (Querist)
Follow

24 June 2015 plz any one clarify me about the following matters : 1. Can more than 20000 in cash can be paid to creditor ?? whether this is allowed / disallowed ? 2. if any advance given suppose 200000 by real state business to purchsase any land ? ( the cost for acquiring the land is generally expenditure ) 3. any advance given to employee for incurring expenditure relating to business 500000 given. I want to know in above situations whether the expenditure is allowed / disallowed excess 20000 cash payment as per income tax act .

Ankur Singhal

Ankur Singhal (Expert)
Follow

25 June 2015 1. no it is disallowed. as amount exceeds rs 20000/-.

2. For real estate business land is Stock in trade or purchses the expense can not be paid in cash exceeding Rs.20000/- Hence disallowed.

3. Petty cash given to employee,
Here u have to check whether he make any cash [payment exceeding Rs. 20000/- in a day to the same person.
If yes the Disallowed.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Angadi & Co

KAVITA CHAUHAN

Deepak Nayak

RAVINDRA KUMAR

Dalbir Singh Wadhera

Subscribe Now

Expenditure in excess of cash 20000

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA