PAYMENTS CASH MODE ALLOWED IN IT ACT

This discussion clarifies the permissibility of cash payments for sharing fees collected by a nursing home with its doctors under the Indian IT Act. It questions the applicability of Section 40A(3) and whether bank channel modes are compulsory for these transactions. The advice suggests that cash payments for fee sharing are generally not allowed, and while expenses under £10,000 might seem permissible in cash, the core rule against cash payments for such professional fee sharing likely still applies.