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Disallowance for cash payments more than rs.10,000/-

Others 293 views 2 replies

Our client has paid Rs.15,000/- to a trade union (CITU) as donation but splitted the payment was split into two different payment vouchers of Rs.9,500/- and Rs.5,500/- with receiver signature being different. Now my question is whether should I consider the recipient as CITU or the persons collectiong the amount. And should it be disallowed as an expense or not and moreover, Is there any deduction for this donation to the trade union (CITU) assuming that payment is made through bank.

Replies (2)
brother,As your assumption!
the payment is made through bank!
hence 40A(3)is not attracted.

1)you should consider the CITU a trade union as recipient!
2(31) person includes,
Association of persons(I.e persons must joined for a common purpose or action and their object must be to produce income
agreed with anush ram


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