27 May 2016
If We make payment to foreign Supplier in Cash in foreign Currency Equivalent Amount In Rs is more than 20000 in a single Day, whether Exp. Allowable in Income Tax.
27 May 2016
The income tax department in its endeavor to plug in tax evasion mechanisms has introduced section 40(a)(3). This section provides that any expenditure incurred by an assessee (whether individual, company, firm etc.) above Rs. 20000/- other than by account payee cheque or draft shall not be allowed as a deduction. Simply put, this section covers those payments over Rs. 20000/- made by bearer cheque or cash.
However, if the payments are made for hiring or leasing carriages for goods such as lorries, trucks etc then the limit is extended to Rs 35000/-
Abhishek Ranjan Singh ARS Solutions www.arssolutions.co.in +919022838615
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