Payment in excess of 20000
This query is : Resolved
CA Sahil Singla..
(Querist)
08 May 2011
Sir
My client has paid in cash Rs. 30000 as donation to someone not covered by 80C. I know that this amt is disallowed for the purpose of income tax , but my question is whther he can make this payment since it is in excess of 20000 ?
My client has paid in cash Rs. 30000 as donation to someone not covered by 80C. I know that this amt is disallowed for the purpose of income tax , but my question is whther he can make this payment since it is in excess of 20000 ?
08 May 2011
Provision of section 40A(3) does not apply in respect of an expenditure which is not to be claimed as deduction under sections 30 to 37. For instance, if an assessee gives donation in cash, section 40A(3) is not applicable, since donation is not deductible under sections 30 to 37.
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CA Sahil Singla..
(Querist)
08 May 2011
agreed with u...let's talk without considering 40A(3)...I MEAN TO SAY IS THERE ANY PENALTY UNDER IT Act for payment exceeding 20000 for any purpose like in my case ?
08 May 2011
No Penalty.
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CA Ayush Agarwal
(Expert)
05 January 2013
Penalty Only For Revenue Expnditure.
Further Let Me Add, From Financial Year 2012-13,Under Section 80G/GGA (Subsequent Section of Donations), No deduction shall be allowed under this section in respect of donation of any sum exceeding ten thousand rupees
unless such sum is paid by any mode other than cash.
Regards,
CA Ayush Agrawal
Further Let Me Add, From Financial Year 2012-13,Under Section 80G/GGA (Subsequent Section of Donations), No deduction shall be allowed under this section in respect of donation of any sum exceeding ten thousand rupees
unless such sum is paid by any mode other than cash.
Regards,
CA Ayush Agrawal
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