Go AD-FREE with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Cash payments exceed 20000 in a single day

Tax queries 1555 views 6 replies

nandan

CA Practice

26 Points Joined October 2013

Q1)My query is if we make a consolidated payments of diffrent bill of different date of a single party mr x which exceeds 20000 as under:

1.1.2014 bill no 01 10000

2.1.2014 bill no 02 8000

3.01.2014 bill no 03 9000

cash payments made on 4.1.2014 total 10000+8000+9000=27000

Plz answer it soon whether payments of 27000 thousand will be disallwed?

Q2) if above mentioned 3 bill (10000+8000+9000) belongs to same day i.e 3.4.2014 and payments made on 4.1.2014 total 27000 then what will be the answer ?

Replies (6)

Jagdish Akbari

Tax Consultant

189 Points Joined June 2008

Will be disallowed.

Pradeep Gupta

Accounts Manager

298 Points Joined January 2010

Cash Payment exceed 20,000/- in a single day to the same person, hence disallowed u/s 40 A(3).

Avinash Saxena

Kota

27 Points Joined February 2011

Ref. Sec.40A(3)

In both case it would be diallowed because :

In case 1: Cash Payment to same person exceed Rs.20,000 disallowed even if payment made for different bills of different date.

In case 2:Cash Payment to same person exceed Rs.20,000 disallowed as payment made for different bills of same day...

shinu kumar meher

articles assitance.

21 Points Joined May 2012

u/s40a cash payment upto 20000 INR. to a single party in a single days is disallowed...

vijendra kumar

chartered accountant

28 Points Joined January 2014

As per section 40A(3) for the applicability the expenditure as well as the payment shoud exeed Rs 20000,So answer the question no 1 ia allowable even if payment exeed 20000 payment in single day beacuse the diffirent bill raised the diffirent dates.

Answer the question no 2 is disallowable.