Payment made in excees 20k in same day

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2013 Dear Sir

One of the our client is received a bill Rs 21,000/- and he paid Rs 18,900 in cash and deduct Tds Rs 2100 its allowed as per income tax or not

Thanks

Ram Avtar Singh

Ram Avtar Singh (Expert)
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25 February 2013 Allowed paymant up to 20000

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Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2013 Sir
after deduction its come below 20k its also allowed not effect the TDS amount

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Ram Avtar Singh

Ram Avtar Singh (Expert)
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26 February 2013 irrespective of any number of transactions, where the amount does not exceed the prescribed amount in each transaction, the rigours of section 40A (3) will not apply.