04 August 2008
dear sir, please let me know for a.y 2008-09 there are cash payments in installments towards creditors totalling upto 95000. what is the position . 1)is it totally considered as income 2)does each payment need to exceedrs.20,000 or the total payments to a particular paymts.
05 August 2008
For AY 2008-09: Cash payments exceeding Rs 95000 in a year with no single payment exceeding Rs 20000/- are fully allowable.
Limit of Rs. 20000 is to be analysed for each and individual payment
From Assessment Year 2009-10:
Aggregate Cash payments in a day should not exceed Rs 20000 whether by way of single or multiple payments -Section 40A(3) Expenses provided in a year and payment made in the proceeding years has also been covered under the scope of this section.
CAclubindia
