Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

cash expenses

sajid alam (3 Points)

22 June 2018

cash expenses limit in itr

Reply
Follow
Share

2 Replies

bk rawi (63 Points)
Replied 22 June 2018

ten thousand rupees per only for day of per head

Upgrade to CAclubindia Pro. Subscribe Now!

Nishchal Rastogi (Accounts Executive) (59 Points)
Replied 22 June 2018

Sec 40A(3)(a) of the Income Tax Act, 1961 provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs. 10000/- in a single day otherwise than by account payee cheque drawn on a bank or by an account payee bank draft or through use of electronic clearing system, shall not be allowed as a deduction.

Sec 40A(3)(b) also provides for deeming a payment as profits and gains of a business or profession if the expenditure is incurred in a particular year but the payment is made in any subsequent year in a sum exceeding Rs. 10000/- otherwise than by account payee cheque or by an account payee bank draft or through use of electronic clearing system.