Krishna Prasad (Partner) (260 Points)
19 August 2009Whether Cash payments exceeding Rs.20000/- for construction of own building attracts any penalties
CA Vikrant Arora
(Practicing Chartered Accountant)
(67 Points)
Replied 19 August 2009
| Originally posted by :Krishna Prasad | ||
| " | Whether Cash payments exceeding Rs.20000/- for construction of own building attracts any penalties | " |
Dear Krishna Prasad ,
The provision of amounts above 20000 of payments is applicable to business expenditure only . Even if u pay Rs. 20000 or above in cash for Capital Assets of business , there isn't any disallowance/penalty. (40A3)
269SS relates to loans , again not ur case.
As u have paid cash for ur House's construction (Personal exp) , there is no applicability of 40A(3) n it , so no penalty.
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