SANJAY (CHARTERED ACCOUNTANTS) (943 Points)
27 July 2011Dear 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..
SANJAY
(CHARTERED ACCOUNTANTS)
(943 Points)
Replied 27 July 2011
I m still waiting for reply...!!!! Can anybody help me??
suman
(Auditor )
(388 Points)
Replied 27 July 2011
No problem in income tax . disallowance u/s 269SS / 269T will not attract in this case.
suman
(Auditor )
(388 Points)
Replied 27 July 2011
Also like to mention that section 40A(3) is also not applicable on this transaction.
Ashpak Ali
(Finance Accounts Manager)
(87 Points)
Replied 27 July 2011
pernership firm can not pay more than 20000 rupees other than cheque by bank
CAclubindia
