05 December 2012
QUES 1) IF WE TRANSFER CASH EXCEEDING RS 20000 FROM ONE LOCATION TO ANOTHER LOCATION THEN SEC40A(3) ATTRACT OR NOT.IF NOT THEN WHICH SECTION ATTRACT??
QUES 2) IF WE DEPOSIT CASH INTO BANK EXCEEDS 20000 THEN SEC40A(3)ATTRACT OR NOT. IF NOT THEN WHICH SECTION ATTRACT//
S/ 40A(3)states: Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
So both of transaction doesnt attracts S/40A(3).
There is no such section barring for transfer of Cash & deposit of cash in to bank.
Thanks//Vaibhav Revert for more clarity. Use thank button to convey your appreciation.