Payment more than 20000

This query is : Resolved

Nitin Panthri (Querist)
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27 March 2009 Hi,
If any business man has made cash payment more than Rs. 20000/-, but not for revenue producing activities...what would happen whether the amount will be disallowed???

Ram Avtar Singh

Ram Avtar Singh (Expert)
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27 March 2009 for which purpose he is paying

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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27 March 2009 Only if the expenditure is claimed for income tax benefit then only the section is applicable.

For eg. he spends for personal use and account it as drawings in firm books then this section is not applicable.

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CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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27 March 2009 it wont be allowed as deduction

CA. Aryendra

CA. Aryendra (Expert)
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27 March 2009 Dear Nitin,

I think you are just asking problem which came in your mind,but questin is good my views are as under:

1. If yor payment is not related revenue expenditure then you have to check sec 269SS & 269 T

2. But you can pay only one situatin, if you paying only for taht item which comes in balane sheet not fall in the area aforsaid sectin.