Payment made in cash for more than 20,000
This query is : Resolved
Ishant agarwal
(Querist)
01 June 2011
Dear Sir,
My Name is Ishant Agarwal.
In one of my client Company, one director goes in US for office purpose. He purchase US Currency for 2000$. He pay Ebullient amount in Cash to Delar i.e near Rs. 92000.
in US he spend these Dollar.
Can this Expenses is Allowed in Income Tax Act.
My Name is Ishant Agarwal.
In one of my client Company, one director goes in US for office purpose. He purchase US Currency for 2000$. He pay Ebullient amount in Cash to Delar i.e near Rs. 92000.
in US he spend these Dollar.
Can this Expenses is Allowed in Income Tax Act.
Ramasubbu K
(Expert)
01 June 2011
Since he has spent the amount officially, it shall be allowed under IT Act.
Ishant agarwal
(Querist)
01 June 2011
Thanks Sir
But as per sec 40(a)any Expenses for more than 20000 in cash is diallowed.
can this expenses is allowed even if all 2000$ spend in singal transaction.
But as per sec 40(a)any Expenses for more than 20000 in cash is diallowed.
can this expenses is allowed even if all 2000$ spend in singal transaction.
01 June 2011
Kindly see the exceptions to the rule, where the payment made in cash for more than Rs.20000 is not disallowed.
01 June 2011
Kindly see the exceptions to the rule, where the payment made in cash for more than Rs.20000 is not disallowed.
01 June 2011
The expenses will be allowed and you can see the exception of section 40A(3) i.e. Rule 6DD, you'll get more clear understanding.
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