Dear all,
Can a partnership firm pay cash (Other than by cheque/Bank) of Rs.5 Lacs to the partner for his profit share.. Is there any consequences of such cash payment in relation to Income tax Act..
Please reply soon, its urgent..
Thanks in advance..
I m still waiting for reply...!!!! Can anybody help me??
No problem in income tax . disallowance u/s 269SS / 269T will not attract in this case.
Also like to mention that section 40A(3) is also not applicable on this transaction.
pernership firm can not pay more than 20000 rupees other than cheque by bank
Thanks suman...
CAclubindia
