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payment / receipt above Rs.20000

This query is : Resolved 
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(Querist)
05 June 2009 Can anybody clarify whether a receipt / payment above Rs. 20000 is admissible for a corporate entity (ltd. Company) in context to income tax act.
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CA.Varun Ranjan

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CA.Varun Ranjan (Expert)
05 June 2009 in case of payment u must pay in form of cross cheque or draft only , if u pay in cash same exp would be disallowed.

no such requirement in case of reciept.
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Manmohan ACA, CS

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Manmohan ACA, CS (Expert)
05 June 2009 Any expenditure in excess of Rs. 20000 Must be paid from A/c payee cheque or DD otherwise it will be disallowed u/s 40A(3).

However some exception are provided under rule 6DD
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CA Nitin Wadhwani

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CA Nitin Wadhwani (Expert)
05 June 2009 No such restrictions in case of receipts above 20,000-
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Parveen Bansal

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Parveen Bansal (Expert)
05 June 2009 No restriction in respect of capital expenditure and income.

Cash payment of above Rs. 20000 in respect of revenue expenditure is disallowed u/s 40A(3)
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