As per Section 40(A)3 of Income Tax Act, if Payment is made through CROSSED Cheque(not A/c Payee Cheque) is it treated as allowable expenditure if the payment exceeds Rs. 20000/-
25 October 2008
section 40(A)(3) has been amended. Now if a payment exceeding 20000/- is allowed under income tax act if it is made through a account paypee cheque only.
25 October 2008
I am agree with Mr. Sachin Kumar, it is amended last year, cross cheque can be endorsed to anybody but cross cheque with language "account payee only" cant be endorsed