Is it Expense in relation to Income under the head Business or Profession ?

Originally posted by : Himanshu Bansal
	Is it Expense in relation to Income under the head Business or Profession ?

 ya it is paid by a pvt ltd co.

Then It should be disallowed u/s 40A(3), disallowance of cash payment Exceeding Rs. 20,000.

Experts pls correct me if I am wrong.

agree with all........

Originally posted by : Rohit kapoor
	Originally posted by : ANKUR KUMAR   Full amount of Rs. 51,200/- will be Disallowed for the Previous Year and will be added in the Computation of Income of the previous year as "disallowance Under Section 40A(3)" and thereby assessable to tax.

agreed

Full ( Rs. 51200) amount will be disallowed as per section 40 A(3).

full RS 51,200/- will be disallowed.....the limit of allowable cash expense is RS 20,000/- and if the amt of CASH PAYMENT exceed RS 20,000/- then whole amount will be dissallowed

if amount exceeds Rs.20000 entire amount is diallowed u/s 40A(3)

Hiii... Sudhanshu

Ya.. it is disallowed.. but you can do onething ask hotel to provide 5 to 6 bills.... if u have paid cash against 1 bill then it is completely disallowed.. better to ask for 5 to 6 bills...

I hope this will suffice u ??

Have a nice day !

agree with all

Any payment in cash above Rs.20,000/- is disallowed and whole amount of payment will chargeable to tax.

Ashwani