hi,
I had made a payment exceed 20000 in cash. I know payment exceed 20000 in cash is totally disallowed but what effect it will arise when i make a payment exceed 20000 tell me briefly.
Thanks
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payment exceed 20000
Replies (10)
20% of payment is disallowed (100% from AY 2008-09) if payment is made by other than A/c payee cheque or A/c payee Draft(by cash or berear cheque) & payment is made for expenses which are deductible under the provisions of Income Tax Act .
When payments are made in excess of Rs.20,000.00, then such amount will be disallowed, which has the effect of increasing your profit.More profit, then more tax.This provision is made to decline people from booking bogus expenditure and to have proper transacting evidence for a particular payment being made to any person.
Are the persons assessable u/ss 44 Ad / 44AE or 44AF also liable to be penalised for paying in cash for expenses >Rs.20,000/-. Pl also suggest HOW?
jitendra is abs correct
100% disallowed.
there is no need of so much discussion brother......
the payment u made is 100% disallowed so pay tax and be happy..
GOOS QUESTION RAISED BY MANISH. IT CAN NOT BE DISALLOWED , BECAUSE WHEN AN ASSESSEE FILE THE ITR UNDER THESE SECTIONS THEN HE DOEST NOT REQUIREE TO MAINTAIN BOOKS OF ACCOUNTS . THEN A.O CAN NOT ASK FOR THE BOOKS OF ACCOUNTS OR VOUCHER . THANKS
WHAR IS A RATE OF F B T ON EXIBITION FOR FOREIGN TRAVEL.
plz.Reply Urgently.
Rate of FBT on Foreign Travel is 5% which is added by finance act,2007 as clause q i.e. toures & travels including foreign travels
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