Electricity Payment

This discussion clarifies whether a proprietor can pay electricity bills in cash exceeding Rs. 11,450 under Section 40(a)(3) of the Income Tax Act. The consensus is that cash payments are permissible and will not be disallowed as expenditure, provided the payment is made to government or Government of India controlled State Electricity Boards, not private distributors. Case law suggests this is acceptable, especially when adhering to Rule 6DD.