Payment more than 20000

950 views 5 replies

A Ltd a company purchases goods from B Ltd for Rs.2,00,000/- A Ltd pays Rs.1,00,000 in an account payee cheque and rest in cash on 5 different days. Does it lead to disallowance.

Please reply

 

Replies (5)

No, since the payment has not exceeded Rs.20,000/- on a single day.

 d cash payment should b more den 20000 for disallowance in a single day 

since in dis case it is 20000 and on diff. dates 

so it is fully allowed.. 

actual when payment made for labour or transport it is not valid to pay more than 20000 in cash for payment against purchased it is allowed.

payment made in cash in excess of Rs. 20000 made in different day is allowed under the income tax act.

The main intention of Sec 40A(3) is to restrict the cash payments in excess of Rs.20000 in aggregate (to curb the black money in general) . If the invoice is for the entire 2 lakhs, the cash payments made on different dates will be disallowed. However, if invoices are of different amounts with different dates, then the same can be allowed. Otherwise, the main objective of that section itself will get defeated.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details