23 August 2017
In a company x ltd if A is one of the director and she withdrew cash 50000 will it not attract sec 40(A)3 where present limit in a day is only 10000.
23 August 2017
Mere withdrawal of cash from Bank Account doesn't attract disallowance u/s 40a(3). Expenditure of 10000 or more in cash in a single day (with certain exceptions) amounts to disallowance u/s 40a(3) HERE EXPENDITURE IS IMPORTANT.
23 August 2017
its not withdrawal of cash from bank a/c direct cash payment but in narration its mentioned as drawings entry is A current a/c
To cash a/c
23 August 2017
You have mentioned it as private limited Company and there is no concept of Drawings in Pvt; ltd. entity. If it is Director's Remuneration then it is disallowed and if it is Loan or Advances etc to director then there is no need to check 40a(3)
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