Cash Payment exceeding Rs. 20000/- through Bank payment

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pradeep (Querist)
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24 November 2008 Whether we can deposit Cash of Rs. 25,000/- on behalf of our customer to his account through Anywhere Bank or Core Banking System. whether it is an allowable expenditure under Rule 6DD of Income Tax Act?

Ravikumar.G

Ravikumar.G (Expert)
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24 November 2008 Following payment thro' banking system is allowed even if it is more than Rs.20K:

1. any LC arrangement
2. a mail or telegraphic trn
3. book adjustment from any a/c in a bank to any other a/c in that or nay other bank
4. bill of exchange made payable only to a bank
5. use of electronic clearing system thro' a bank a/c
6. credit card
7. debit card

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 November 2008 Yes based on the decision in Sri Renukeswara Rice Mills Vs ITO (2005) 278 ITR 77 (Bang Tri)

CA Chaitanya

CA Chaitanya (Expert)
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24 November 2008 Yes it is an allowable expenditure. You can deposit.

CA. AMIT AGARWAL

CA. AMIT AGARWAL (Expert)
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25 November 2008 Yes you can deposit. It will not be disallowed

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