14 March 2010
Is any changes in income tax act relates to the cash payment limit Rs.20000/- (Cash paid to single party more than Rs.20000/- were disallowed as expenses)
• Amendment to Section 40 A(3) o It is proposed the limit for disallowance of expenditure made in the case of transporters otherwise than by an account payee cheque or account payee bank draft from RS.20,000/- to Rs.35,000/- o The proposed amendment will apply to transactions effected on or after the 1st October,2009. • It is proposed that any institution (having receipts of more than rupees one crore) has to make an application for seeking exemption by filing application or on before 30th September of the succeeding financial year. • An amendment is made to include certain activities within the ambit of provisions relating to “charitable purpose” in the Income-tax Act.
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