cash deposited directly by the party into our bank account.

This query is : Resolved

anshulmarele (Indore) (Querist)
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09 February 2011 When the party directly deposits cash into our bank account, does section 40A(3) gets violated? OR any other section gets violated?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 February 2011 Section 40A(3) is not violated by the person who is a receiver. So you need not to worry.

It is applicable to the payer and only in such cases when he deposits cash exceeding Rs. 20000/-.

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Guest

Guest (Expert)

09 February 2011 Directly depositing in bank account is equilent to cash payment and therefore, provisions of Sec. 40A(3) will be applicable to payer.

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