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44a (3) disallowance

30 June 2016

Hii all, Is cash paid exceeding Rs.20,000 for purchase of assets, repayment of loan, salary advance disallowed? Thanks and regards, Vijay mariyala

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3 Replies

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 30 June 2016

As per rule 6DD of income tax rules payment made to a banking co.is exempt from the application of section 40A(3), so if repayment of loan is to banking co.it will be exempt , for other payments mentioned by you they will be disallowed

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Rup Kumar (finance manager) (288 Points)
Replied 30 June 2016

yes, disallowed.

CA shanky pahoja (accountant) (615 Points)
Replied 01 July 2016

yes amount exceeding 20000 paid in cash is disallowed subject to exmption given under rule 6dd

And repayment of loan and advance for purchase of immovable property of amount exceeding rs. 20000 in cash is not only exempt but also subject to penalty of equal amount as per section 269

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