Cash Payments & Income Tax Rules: Is Rs 15,000 Allowed?

Cash payment

Rahul Satpute

20 Points Posted on 29 January 2020

If I pay Rs 15000 a person on 28/01/2020 Rs 9000 and on 29/01/2020 Rs 6000 it is allowed as per Incom tax.

Replies (4)

Quick Summary

This discussion clarifies whether a cash payment of Rs 15,000 made to a single person across two different days (Rs 9,000 on Jan 28, 2020, and Rs 6,000 on Jan 29, 2020) is permissible under Indian Income Tax laws. According to Section 40A(3), expenses paid in cash exceeding Rs 10,000 to one party on a single day are generally disallowed. However, since the payments were made on separate days, this expense is considered allowed.

AJIT SINGH

accounts

20 Points Posted on 29 January 2020

Not allowed above 10k each party each day

CMA M.Keerthi chandra

C.A FINAL STUDENT AND QUALIFIED C.M.A

20 Points Posted on 29 January 2020

'Expenditure to a person in a day' according to such wording in Sec 40A (3) if such payment is made on different days to same person,such expense is not disallowed.