Regarding cash payment by party directly in bank.

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parteekjain (Querist)
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13 April 2013 If in case of a company if the debtors have made the cash payments exceeding Rs. 20000/- directly into the bank account of the company instead of giving payment through account payee cheque or DD.

Then in this case if there is violation of provision of income tax regarding not making cash payment for more Rs. 20000/-.

Please reply soon.

Thanks in Advance.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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13 April 2013 Your case is regarding receipt of cash not the payment of cash. For cash receipts section 40A(3) will not attracts. So in your case you didn't face any problem.

OM SAI SRI SAI JAI JAI SAI

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