Paid to ca in cash above 20000 for payment of taxes

 

Dear Members,

Please advise me on the following case,

Can a client pay more than Rs 20000 in cash to his ca/adv. for payment of taxes on clients behalf by ca`s/adv`s internet bank account.

Regards

Replies (3)

no because it is not in the list of exceptions since the client pays to another proffesional in cash and not directly to the tax authorities..

@ sheenaji

thanks,

paying above Rs. 20000  to a ca/adv is NEITHER loan/deposit covered u/s 269ss NOR an expenditure for the client consequently no question of dissallowibility.

  therefor what could be the consequence if a client pays above Rs. 20000 to a ca/adv for paying of income tax on his behalf

Regards

Hi Abhishek,

The client can definitely pay the amount to his CA/advocate for payment of taxes,  as pymt towards taxes in excess of Rs. 20k is not disallowed.

However you will be required to maintain the proofs that the payment is being towards taxes, so that if the case comes up for scrutiny, you can provide the requisite evidence.

This is an normal procedure & paymt to advcate/ca twoards pymt of taxes of clinet does not amounts to payment of prof fees.  The chargin of the said prof to his client for providing the servie would amount to pymt of prof fees & the prof would charge the same in his final bill

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