Transaction above Rs.20000
This query is : Resolved
21 June 2011
If any person make a payment in cash exceeding Rs. 20,000/- what liability attached to him under Income Tax Act, 1961.?
Regard
preet
Regard
preet
21 June 2011
Any expense greater than 20000 in cash will be disallowed while computing profits and gains from business or profession. There are certain exemptions available to this under rule 6DD.
21 June 2011
in which section of income tax act... this transaction is disallowed?
21 June 2011
Section 40A(3) of Income Tax Act.
21 June 2011
expenses in revenue nature is disaloowed but if you pay capital nature not to be disallowed in any section of it act.
21 June 2011
Dear Sanjay,
It's no where mentioned in the secion that expenses should be capital or revenue nature. amount will be disallwed if Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
It's no where mentioned in the secion that expenses should be capital or revenue nature. amount will be disallwed if Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
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