According to Sec 40 a (3) cash payment cannot exceed 20,000 /- BUT IF
Suppose if there is public holiday ( means in banking sector ) then
Can I make payment above 20,000 /- Rs in cash in such day........if YES then why?
CWA Students most welcome
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Sec 40 a (3)
Replies (8)
yes the payment can be made in cash. but condition is that the public holiday is out of unexpected reasons then it is allowed. if u knew that it is public holiday and knowingly u r making the payment on that day then it is not allowed.
Yes. as per rule 6DD, where the payment was required to be made on a day on which the banks were closed either on account of holiday or strike, then section.40A(3) not apply
| Originally posted by : RAKESH | ||
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yes the payment can be made in cash. but condition is that the public holiday is out of unexpected reasons then it is allowed. if u knew that it is public holiday and knowingly u r making the payment on that day then it is not allowed. |
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Yes... Rule 6DD will apply in this case and you can very well make payment above 20000 also...!!!
Yes this is an exception for Section 40A(3)-RULE 6DD..
Thank u Friends for ur reply
yes Read exception of sec 40 A(3)...
Rule 6 DD
Please ensure that the payment is necessarily required to pay on holidays as mention in Rule 6DD.
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