Rs. 20,000 Cash Payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2010 If I have to Pay Rs. 100000/- to Cash Purchase of any product on Cash memo in a single day.
or
If I Paid expense of fuel,oil and other lubricant of rs. 50,000/- on cash memo in a single day.

which amount will be disallowed as per IT Act.

Pls explain simply.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
Follow

27 March 2010 both expense are disallow as per IT act.

as per sec 40A(3) any payment more then 20000 on a single day disallow for any type of exp. cover u/s 30 to 37.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
Follow

27 March 2010 If you had paid Rs 200000/- then disallowance shall be applicable on whole the amount

This is will not applicable for acuisition of Asset.

Upgrade to CAclubindia Pro. Subscribe Now!