Cash payment exceeding 20000
This query is : Resolved
13 September 2012
can a inverter be purchased for csh exceeding 20000
13 September 2012
Section 40A(3) doesn't applies to fixed assets. If the purchase as fixed asset then not applicable. if it is as stock in trade than applicable.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
13 September 2012
As inverter will come under the categorr of Fixed Assets so the same can be purchased.
As 40(a)3 does not apply to Fixed Assets
As 40(a)3 does not apply to Fixed Assets
13 September 2012
Section 40A(3)(a) of the Income-tax Act, 1961 provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction.However if payment is being made for plying, hiring or leasing goods carriages then Limit for these section is Rs 35000/-,instead Of 20000/-
Section 40A(3)(b) also provides for deeming a payment as profits and gains of business or profession if the expenditure is incurred in a particular year but the payment is made in any subsequent year in a sum exceeding Rs. 20,000/- otherwise than by an account payee cheque or by an account payee bank draft.
Read more: http://www.simpletaxindia.net/2009/12/payment-exceeding-20000-40a3-exceptions.html#ixzz26LcW1AL9
Section 40A(3)(b) also provides for deeming a payment as profits and gains of business or profession if the expenditure is incurred in a particular year but the payment is made in any subsequent year in a sum exceeding Rs. 20,000/- otherwise than by an account payee cheque or by an account payee bank draft.
Read more: http://www.simpletaxindia.net/2009/12/payment-exceeding-20000-40a3-exceptions.html#ixzz26LcW1AL9
13 September 2012
If you have further doubt, you can mail me at -
sanyam.arora27@gmail.com
Regards
Sanyam
sanyam.arora27@gmail.com
Regards
Sanyam
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