Rent payment in cash 20000/-

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2013 Dear All,

I want to know the rule of payment for Rent 20000/- is valid or not in single transaction.
Please provide me full detail.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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19 September 2013 As per the section 40A(3) payment upto Rs.20000 is acceptable but more than Rs.20000 is not acceptable. So in your case the transaction is valid and allowed as expenditure.

OM SAI SRI SAI JAI JAI SAI

ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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11 October 2013 yes up to 20000 is allowed for single cash payment

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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11 October 2013 Agree with Experts,
As per Sec 40{a}3 of the IT Act..
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds {20000} twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.