Cash payment above rs.20000/-
This query is : Resolved
22 September 2011
I have purchase shirt pic from a person not a dealer (who sale shirt pics on cycle)
I had made the following payment on
14/9/2011
10000(Cash)
20000(Cash)
19000(Cash)
------
49000
------
sir pls tell me that above payment is allowed or disallowed
Urgent
I had made the following payment on
14/9/2011
10000(Cash)
20000(Cash)
19000(Cash)
------
49000
------
sir pls tell me that above payment is allowed or disallowed
Urgent
22 September 2011
Since the aggregate payment per day exceeded the threshold limit, expenses will be disallowed under section 40A(3) of the IT Act,1961 ,if purchases are for business purposes.
22 September 2011
Sir what is the threshold limit under section 40A(3)
If in this case I paid entry tax on it than also it disallowed
urgent
If in this case I paid entry tax on it than also it disallowed
urgent
23 September 2011
Threshold Limit U/s 40A(3) is Rs.20000/- for one person on one day. If the payment is exceeding Rs.20000/-, you need to pay it through your bank.
It does not matter whether you paid entry tax or not.
Thanks,
CA M Sreenivasa Rao.
It does not matter whether you paid entry tax or not.
Thanks,
CA M Sreenivasa Rao.
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