cash payment exceeding rs.20000

This query is : Resolved

Report Abuse Follow Query Ask a Query

Radhika P S

Radhika P S (Querist)
Follow

21 June 2010 can cash payment in excess of rs.20000 be made to directors for sitting fees

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
Follow

21 June 2010 Read the relevant clause "Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be Allowed in respect of such expenditure" Any expense includes directors sitting fee also hence it shall be disalloved if >20000

Ca Aashish Upadhyay

Ca Aashish Upadhyay (Expert)
Follow

21 June 2010 NO section 40A(3) is applicable when any payment for expenses in excess of Rs 20000/- is made otherwise than an account payee cheque.

SO PART IT or SET IT APART.!

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!