CAN AN INDIAN MAKE PAYMENT IN CASH TO A NRI IN EXCESS OF RS 100000?I HAVE HEARD THAT PAYMENT IN EXCESS OF RS 100000 IS NOT PERMISIBLE UNDER THE INCOME TAX ACT?KINDLY QUOTE THE SECTION UNDER WHICH THE PROHIBITION IS GIVEN?
john sanj (student of foundation) (131 Points)
05 April 2011CAN AN INDIAN MAKE PAYMENT IN CASH TO A NRI IN EXCESS OF RS 100000?I HAVE HEARD THAT PAYMENT IN EXCESS OF RS 100000 IS NOT PERMISIBLE UNDER THE INCOME TAX ACT?KINDLY QUOTE THE SECTION UNDER WHICH THE PROHIBITION IS GIVEN?
Devendra
(Chartered Accountant)
(4775 Points)
Replied 05 April 2011
IF YOU ARE LIBALE FOR TAX AUDIT, THEN ANY PAYMNET MADE IN CASH ABOVE RS. 20000 IS DISALLOWED U/S 40(A)(3).
REGARDS,
DEVENDRA K
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