CA Mohit Agrawal (Chartered Accountant) 10 May 2013
I case a kacha adhatiya receives payment through cheque in his bank account on behalf of the principle and makes payment to him in cash than will it be disallowed in the hands of kacha adhatiya or buyer?
CAclubindia Online Learning offers a wide variety of online classes and video lectures for various professional courses such as CA, CS, CMA, CISA as well as various certification courses on GST, Transfer Pricing, International Taxation, Excel, Tally, FM, Ind AS and more. know more
Devendra (Chartered Accountant) 10 May 2013
Any payments made in cash exceeding the threshold limit shall attract disallowance u/s 40(A)(3) of the Income Tax Act, 1961, unless such payment is exempt under rule 6DD of the Income Tax Rules, 1962.
Therefore in the above case, Section 40(A)(3) shall be attracted to the payment made by Kacha adhatiya.
Manoj KumarParida (Accountant) 25 September 2014
I have studied Singhania Books that if Fixed Asset Purchased in cash above Rs.20,000 then depreciation will be disallowed.But now came to Know that cannot be Disallow U/S 40A(3)
Which is correct pls give me some confirmation
Manoj Kumar Parida