help plz!!!

IPCC 550 views 2 replies

dear friends...

i have a doubt u/s 40a(3) for cash payments made exceeding 20000 in a day...

my question is..... if i have five different purchase bills for different dates of Rs.1 lac each from a single person.....n i want to make payment on one single day.....so what should be my maximum payment so as not to be charged under section 40a(3):

a. Rs.20000 per bill, i.e. 20000*5=100000

or

b. only Rs.20000 irrespective of number of bills.

Replies (2)
a. Rs.20000 per bill, i.e. 20000*5=100000

 

To atttract 40A(3)

  • more then Rs.  20000
  • per person
  • per bill
  • in cash
  • in a single day

 

so if 2 bills are there in a day , not exceeding rs. 2000;  40A(3) Attracted


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