section 40 A 3
This query is : Resolved
25 November 2010
is there any provision relating to the cash payment that should not exceed any amount in a single year for the expenditure. like there is a provision for cash expense that it should not exceed Rs.20000/- in a day????
CA. Aryendra
(Expert)
25 November 2010
Yes Section 269 SS and 269 T
Section 269SS:
Section 269SS provides that any loan or deposit shall not be taken or accepted from any other person otherwise than by an account payee cheque or account payee bank draft if,
(a) the amount of such loan or deposit or the aggregate amount of such loan and deposit ; or
(b) on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid and the amount or the aggregate amount remaining unpaid ; or
(c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is twenty thousand rupees or more
Section 269T :
Section 269T of Income Tax Act provides that any branch of a banking company or a cooperative society, firm or other person shall not repay any loan or deposit
otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person, who has made the loan or deposit, if
(1) The amount of the loan or deposit together with interest is Rs 20000 or more, or
(2) The aggregate amount of loans or deposits held by such person, either in his own name or jointly with other person on the date of such repayment together with interest, is Rs 20000 or more.
Section 269SS:
Section 269SS provides that any loan or deposit shall not be taken or accepted from any other person otherwise than by an account payee cheque or account payee bank draft if,
(a) the amount of such loan or deposit or the aggregate amount of such loan and deposit ; or
(b) on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid and the amount or the aggregate amount remaining unpaid ; or
(c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is twenty thousand rupees or more
Section 269T :
Section 269T of Income Tax Act provides that any branch of a banking company or a cooperative society, firm or other person shall not repay any loan or deposit
otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person, who has made the loan or deposit, if
(1) The amount of the loan or deposit together with interest is Rs 20000 or more, or
(2) The aggregate amount of loans or deposits held by such person, either in his own name or jointly with other person on the date of such repayment together with interest, is Rs 20000 or more.
25 November 2010
sir
here i am confused.
there is one case one of my client he is dealing with one contractor.and he is paying him Rs 500000 in a year by cash payment during whole year and he is not paying him above 20000 in a day.
so i am asking that is there any specific limit for cash expense in a year.
here i am confused.
there is one case one of my client he is dealing with one contractor.and he is paying him Rs 500000 in a year by cash payment during whole year and he is not paying him above 20000 in a day.
so i am asking that is there any specific limit for cash expense in a year.
sudhakar ca cwa
(Expert)
25 November 2010
Then no problem
CA. Aryendra
(Expert)
30 November 2010
Yes it will be allowed
In your case there is no problem.
Expenses dissallowed when payment made to a person " in a day" otherwise than the account payee cheque exceeds Rs. 20000.00.
In your case there is no problem.
Expenses dissallowed when payment made to a person " in a day" otherwise than the account payee cheque exceeds Rs. 20000.00.
04 December 2010
sir in case of scrutiny the department can argue or can say that how can u say this is a legal expense and not a fodge expense?
how we can clarify them it is a right expense?
how we can clarify them it is a right expense?
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