Rent payment in cash 20000/-
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 September 2013
Dear All,
I want to know the rule of payment for Rent 20000/- is valid or not in single transaction.
Please provide me full detail.
I want to know the rule of payment for Rent 20000/- is valid or not in single transaction.
Please provide me full detail.
Dintakurthi Tirumala
(Expert)
19 September 2013
As per the section 40A(3) payment upto Rs.20000 is acceptable but more than Rs.20000 is not acceptable. So in your case the transaction is valid and allowed as expenditure.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
ACS Gaurav Jain
(Expert)
11 October 2013
yes up to 20000 is allowed for single cash payment
CA Pallav Singhania
(Expert)
11 October 2013
Agree with Experts,
As per Sec 40{a}3 of the IT Act..
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds {20000} twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
As per Sec 40{a}3 of the IT Act..
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds {20000} twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
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