Cash Payment for vehicle insurance from Private Company

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FINANCE PROFESSIONAL
10 Points Posted on 17 June 2021
Whether Cash Payment to purchase vehicle insurance policy exceeding Rs 40000 is allowed under Income Tax Law ?
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On 17 June 2021 at 11:26 Report
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Quick Summary
This discussion explores whether paying for vehicle insurance in cash, particularly for amounts exceeding Rs 40,000, is permissible under Income Tax Law. The consensus is that cash payments over Rs 10,000 will likely be disallowed under Section 40A(3), meaning the expense may not be claimable for tax purposes, even if it's a genuine expense.

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4 Points Posted on 17 June 2021
Cash Disallowance Under Section 40A(3) will be attracted. Such expense will not be allowed.
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On 17 June 2021 at 11:41
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Chartered Accountant
24588 Points Posted on 17 June 2021
No it will be disallowed as cash payment exceeds 10000 rupees
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On 17 June 2021 at 12:21
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CMA
13117 Points Posted on 17 June 2021

It will be disallowed

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On 17 June 2021 at 14:42
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tax consultant
3306 Points Posted on 17 June 2021
You may still claim the expense.
because it is genuine bona fide expense
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On 17 June 2021 at 20:02

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