06 September 2010
We paid Rs.35000 in cash to transporter in same bill in same day after TDs deduction on it in 2007-08. Please tell me can it affect max Cash Expenditure limit of Rs. 20000/-
06 September 2010
Pls refer to Sec 40 A(3) Where the assessee incurs any expenditure in respect of which payment is made, after such date (not being later than 31st day of March, 1969), as may be specified in this behalf by the Central Government by notification in the Official Gazette, in a sum exceeding twenty thousand rupees otherwise than by a crossed cheque drawn on a bank or by a crossed bank draft, twenty per cent of such expenditure shall not be allowed as a deduction. 20 % of the amount paid by cash will be disallowed for income tax purpose.
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