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Section 6 dd

This query is : Resolved 

30 May 2012 sir could u please explain me the section 6dd?
And one more question , if we paid a 15000, 20000, 5000 rs. in a single day but the aggregate amount becomes above 20000 is this disallowed u/s 40a(3) ?

30 May 2012 I suppose you are asking about Rule 6DD. Rule 6DD prescribes certain circumstances in which cash payments in excess of Rs. 20,000/- shall not be disallowed.

If the payments are made to the same person, Section 40A(3) is attracted and the expense shall be disallowed.


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