Payment of Installment in cash
Querist : Anonymous
I am a business man and covered under tax audit. I have taken a loan from xyz finance company and due to non encashment of cheque, company wants that I pay Installment of Rs.75000/- in cash (which includes interest also). Can I do so or not.
Whether the auditor will mention this point in his audit report.
Querist : Anonymous
Section 40A(3) read with Rule 6DD , exception of section 40 A(3)
Payment to Specified payee Rule 6DD(a)- Where the payment is made to
•(i) Reserve Bank of India or any banking company as defined in section 5(c) of Banking Regulation Act, 1949;
•(ii) State Bank of India or any subsidiary bank as defined in section 2 of SBI (Subsidiary Banks) Act, 1959;
•(iii) any co-operative bank or land mortgage bank;
•(iv) any primary agricultural credit society or any primary credit society as defined under section 56 of the Banking Regulation Act, 1949;
•(v) Life Insurance Corporation of India.
i.e you can pay cash agasinst auto loan instalments.
https://www.simpletaxindia.org/2009/12/payment-exceeding-20000-40a3-exceptions.html
The payment is towards loan and interest thereon, and as such, not a question of allowance of expenditure or otherwise.
It is a case of repayment of loan and is clearly barred by Section 269T.
Click here to login now
Similar Resolved Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Treatment of Pension ?annuity returns on PMVY
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Free lancer income
- Long Term Service award taxability in hands of company
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
