banner_ad

Cash payment more than rs.20,000

Others 4862 views 25 replies

cash payment more than of Rs.20,000 not allowed to one person one day for expenses, 

but it is allowed for make Demand Draft...

Replies (25)

yes it is allowed

cash payment in excess of Rs 20000 is not allowed, however as per my knowledge payment through Demand draft is allowed.... 

 

 

 

 

YES..

READ EXCEPTION OF SEC 40 A(3)

Rule 6 DD

YES..

READ EXCEPTION OF SEC 40 A(3)

Rule 6 DD

YOUR R8

YOUR R RIGHT BUT CASH PAYMENT TO A TRANSPORTS IS ALLOWED 35000

Section 40 A(3); 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 Rs 20,000/- no deduction shall be allowed in respect of such expenditure.  Hence demand draft is excluded from the purview of 40 A(3).

 

Section 40 A(3); 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 Rs 20,000/- no deduction shall be allowed in respect of such expenditure.  Hence demand draft is excluded from the purview of 40 A(3).

 

YES..

READ EXCEPTION OF SEC 40 A(3)

Rule 6 DD

 

Yes a DD or a Account payee cheque can be issued for amount exceeding Rs20000.

Originally posted by : Lalit Nyati

cash payment more than of Rs.20,000 not allowed to one person one day for expenses, 

but it is allowed for make Demand Draft...

yes its allowed

 

u r ryt

yes demand draft is allowed

thanks to all..


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details