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6ddj exception to section 40a(3) - daily cash payment limits

Tax queries 459 views 2 replies

Aces Full

3 Points Joined February 2018

Rule 6 DD (j) provides that in days of bank holidays and strikes ,cash payment made above 10000 is fully tax deductible expense

My query is that if business makes cash payment over 10000 on Sundays for expenses to single person , would that be allowed as deductible expense for tax calculation ?

Thanks

Replies (2)

if you can prove that such payment made on Sunday is very urgent and if you delay such payment then you will have some hardship or you can't postponed such payment due to any genuine reason.

then it is probable that your payment in cash of more than 10000 will be allowed.

[These restrictions are imposed because on next day i.e. Monday is working day (assuming no holiday) so you can make payment on Monday so why to pay in cash. GO CASHLESS ]