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Cash payments exceed 20000 in a single day

Tax queries 1586 views 6 replies

Q1)My query is if we make a consolidated payments of diffrent bill of different date of a single party mr x which exceeds 20000 as under:

1.1.2014    bill no 01  10000

2.1.2014   bill no 02    8000

3.01.2014   bill no 03  9000

cash payments made on 4.1.2014 total 10000+8000+9000=27000 

Plz answer it soon whether payments of 27000 thousand will be disallwed?

Q2)  if above mentioned 3 bill (10000+8000+9000) belongs to same day i.e 3.4.2014 and payments made on 4.1.2014 total 27000 then what will be the answer ?

Replies (6)
Will be disallowed.

Cash Payment exceed 20,000/- in a single day to the same person, hence disallowed u/s 40 A(3).

Ref. Sec.40A(3) 

In both case it would be diallowed because :

In case 1: Cash Payment to same person exceed Rs.20,000 disallowed even if payment made for different bills of different date.

In case 2:Cash Payment to same person exceed Rs.20,000 disallowed as payment made for different bills of same day...

u/s40a cash payment upto 20000 INR. to a single party in a single days is disallowed...

As per section 40A(3) for the applicability the expenditure as well as the payment shoud exeed Rs 20000,So answer the question no 1 ia allowable even if payment exeed 20000 payment in single day beacuse the diffirent bill raised the diffirent dates.

Answer the question no 2 is disallowable.

In both case it must be disallowed.

Even if Same bill or More than one bill


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