Stamp Duty Payment Exceeding Rs 20000/-

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nikhil (Querist)
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01 September 2010 Hi

I would like to know whether the Stamp duty paid exceeding Rs. 20000/- in cash would be disallowed as deduction or can be allowed as deduction

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 September 2010 Will not be disallowed under section 40A(3) vide rule 6DD(b)of the Income tax Rules,1962.

SANJAY TALATI

SANJAY TALATI (Expert)
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01 September 2010 The question pertains to the application of Sec. 40A(3) read with Rule 6DD of the Income Tax Rules, 1962 which provides for the disallowance of the exp. if the payment made by any mode otherwise than account payee chq. or draft. The ceiling limit is Rs. 20,000/-.
Rule 6DD(b) prescribes the exception to the above and according to which if the payment made to Government (both Central & State Govt), and under the rules framed by it, such payment is required to be made in the legal tender, such as payment of direct taxes, customs, duty, excise , sales tax etc. Hence, the payment of stamp duty being the state subject, the same will be allowed irrespective of the fact whether the same exceeds Rs. 20,000/-.

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