30 October 2007
Suppose X is living in Mumbai and having a Bank Account in Dehli and Y deposit 25000/- (in respect of any expenses) in his dehli a/c and through core banking X received the payment. Will Y will be disallowed for such payment Under Sec 40A(3) for paying in cash.
30 October 2007
Since the payment exceeds Rs.20000/- , the mode of payment allowed is only an account payee draft or cheque. If Mr.X deposits an account payee cheque in Mr.Y's account in Bank, violation will not be attracted.
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