Can i pay to the transporter in excess cash amount of rs. 35000/- in a day for more than 2-3 bills. (Single bill is less than 35 thousand)
4 Replies
praveen
(Chartered Accountant)
(6971 Points)
Replied 15 April 2010
No not in a single day.
You can pay it on more than one days.
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 15 April 2010
No u cn't pay.
To illustrate with an example, let us assume a taxpayer has incurred an expenditure of Rs 40,000/-. The taxpayer makes separate payments of Rs 15,000/-, Rs 16,000/- and Rs 9,000/- all by cash, to the person concerned in a single day. The aggregate amount of payment made to a person in a day, in this case, is Rs 40,000/-. Since, the aggregate payment by cash exceeds Rs 20,000/-, Rs. 40,000/- will not be allowed as a deduction in computing the total income of the taxpayer in accordance with the proposed amendment.
The proviso to the proposed sub-section (3A) provides that in certain prescribed cases and circumstances the provisions of proposed sub-sections (3) and (3A) shall not apply.
regards,
ratan
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 15 April 2010
yes you can do this bcoz the provision is applicable in respect of expenditure as well as payment also. but the amount of each bill should be less than rs. 35000.it deos'n make a diff. that the number of bill is 2 or 3.
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