Payment of Installment in cash
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 June 2010
Sir,
I am a business man and covered under tax audit. I have taken a loan from xyz finance company and due to non encashment of cheque, company wants that I pay Installment of Rs.75000/- in cash (which includes interest also). Can I do so or not.
Whether the auditor will mention this point in his audit report.
I am a business man and covered under tax audit. I have taken a loan from xyz finance company and due to non encashment of cheque, company wants that I pay Installment of Rs.75000/- in cash (which includes interest also). Can I do so or not.
Whether the auditor will mention this point in his audit report.
18 June 2010
The repayment in cash is hit by Section 269T. You may consider payment by way banker's cheque/bank draft.
18 June 2010
agreed, you should pay it by cheque/draft/payorder.
18 June 2010
agree
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 June 2010
Sir, this loan is term loan and it is against vehicle.
18 June 2010
it will be allowed in income tax.
Section 40A(3) read with Rule 6DD , exception of section 40 A(3)
Payment to Specified payee Rule 6DD(a)- Where the payment is made to
•(i) Reserve Bank of India or any banking company as defined in section 5(c) of Banking Regulation Act, 1949;
•(ii) State Bank of India or any subsidiary bank as defined in section 2 of SBI (Subsidiary Banks) Act, 1959;
•(iii) any co-operative bank or land mortgage bank;
•(iv) any primary agricultural credit society or any primary credit society as defined under section 56 of the Banking Regulation Act, 1949;
•(v) Life Insurance Corporation of India.
i.e you can pay cash agasinst auto loan instalments.
Section 40A(3) read with Rule 6DD , exception of section 40 A(3)
Payment to Specified payee Rule 6DD(a)- Where the payment is made to
•(i) Reserve Bank of India or any banking company as defined in section 5(c) of Banking Regulation Act, 1949;
•(ii) State Bank of India or any subsidiary bank as defined in section 2 of SBI (Subsidiary Banks) Act, 1959;
•(iii) any co-operative bank or land mortgage bank;
•(iv) any primary agricultural credit society or any primary credit society as defined under section 56 of the Banking Regulation Act, 1949;
•(v) Life Insurance Corporation of India.
i.e you can pay cash agasinst auto loan instalments.
18 June 2010
For detailed analysis for payment exceeding Rs. 20000 in cash.
http://www.simpletaxindia.org/2009/12/payment-exceeding-20000-40a3-exceptions.html
http://www.simpletaxindia.org/2009/12/payment-exceeding-20000-40a3-exceptions.html
Message likes :
1 times
19 June 2010
The payment does not appear to fall under any of the exception.
The payment is towards loan and interest thereon, and as such, not a question of allowance of expenditure or otherwise.
It is a case of repayment of loan and is clearly barred by Section 269T.
The payment is towards loan and interest thereon, and as such, not a question of allowance of expenditure or otherwise.
It is a case of repayment of loan and is clearly barred by Section 269T.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- Should I report my US salary for January, February, March in Schedule FA?
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
