cash payment exceed Rs 20000

Page no : 3

ravikanth (student) (98 Points)
Replied 07 February 2010

according to Sec 40A the entire amount is inadmissible.............

only cash payment upto rs.20000 is allowed.......

both cash payment and bearer cheque are same..........

Kapil Sharma (Article) (68 Points)
Replied 08 February 2010

The first payment is disallowed since it exceed the limit of sec 40(A)(3). but the payment made in second day is allowed bcz it does not exceed the limit of Rs. 20000.

since as per sec 40(a)(3). any payment in excess of Rs. 20000/- in a day is disaloowed.

manish (Article Assitant) (358 Points)
Replied 08 February 2010

The first payment is disallowed, since it exceed the limit of sec 40(A)(3).

but the payment made in second day is allowed because it does not exceed the limit of Rs. 20000. irrespect of that whether the party remains the same or not.

since as per sec 40(a)(3). any payment in excess of Rs. 20000/- in a day is disallowed.

Varun Gupta (ipcc student) (38 Points)
Replied 12 February 2010

in case of initial payment in cash tat exceeds rs 20000 the entire amount will be disallowed, where as in t latter case of rs 20000 in cash will be allowed if it does not exceeds rs 20000.