Section clarification
This query is : Resolved
03 April 2012
Can Sec40A(3) be invoked under sec 269T to take the benefit if interest is paid in cash in excess of 20000. Can sec 40A(3) provide for rescue, as it states expenditure in excess of 20000 can be paid in cash ?
Is such expenditure under the said sec is defined to include payment of interest.
As sec 269T specifically provides that loan including interest there of is not allowed to be paid in excess of 20000 in a year.
Is such expenditure under the said sec is defined to include payment of interest.
As sec 269T specifically provides that loan including interest there of is not allowed to be paid in excess of 20000 in a year.
04 April 2012
Please understand clearly that Section 40A(3) provides that expenditure in excess of Rs. 20,000/- is DISALLOWED if the same is paid otherwise than ny an account payee cheque.
It provides that cash expenditure in excess of Rs. 20,000/- is DISALLOWED.
What you are saying is totally opposite. You said that Section 40A(3) provides that expenditure in excess of 20,000/- can be paid in cash.
It does not say so.
Section 40A(3) prohibits payment of expenditure in cash if such expenditure exceeds Rs. 20,000.
It provides that cash expenditure in excess of Rs. 20,000/- is DISALLOWED.
What you are saying is totally opposite. You said that Section 40A(3) provides that expenditure in excess of 20,000/- can be paid in cash.
It does not say so.
Section 40A(3) prohibits payment of expenditure in cash if such expenditure exceeds Rs. 20,000.
04 April 2012
Siddhartha is absolutely correct and if you pay any expenditure in cash exceeding Rs.20,000/-, the same shall be disallowed irrespective of any nature of the expenditure.
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