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Plz tell about cash expenses.....

SUDHANSHU (ARTICLE) (99 Points)

23 December 2010

hello....

plz tell me is cash exp. of51200 for hotel bill paid by a company is allowed or not..........

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24 Replies

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 23 December 2010

Is it Expense in relation to Income under the head Business or Profession ?

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SUDHANSHU (ARTICLE) (99 Points)
Replied 23 December 2010

Originally posted by : Himanshu Bansal
	Is it Expense in relation to Income under the head Business or Profession ?

ya it is paid by a pvt ltd co.

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 23 December 2010

Then It should be disallowed u/s 40A(3), disallowance of cash payment Exceeding Rs. 20,000.

Experts pls correct me if I am wrong.

ANKUR KUMAR (CA-FINAL) (39 Points)
Replied 23 December 2010


	Full amount of Rs. 51,200/- will be Disallowed for the Previous Year and will be added in the Computation of Income of the previous year as "disallowance Under Section 40A(3)" and thereby assessable to tax.

(Guest)

Originally posted by : ANKUR KUMAR
	Full amount of Rs. 51,200/- will be Disallowed for the Previous Year and will be added in the Computation of Income of the previous year as "disallowance Under Section 40A(3)" and thereby assessable to tax.

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Sunshine (Helping All) (10575 Points)
Replied 23 December 2010

agree with all........

student (WORKING) (757 Points)
Replied 23 December 2010

Originally posted by : Rohit kapoor
	Originally posted by : ANKUR KUMAR Full amount of Rs. 51,200/- will be Disallowed for the Previous Year and will be added in the Computation of Income of the previous year as "disallowance Under Section 40A(3)" and thereby assessable to tax.

agreed

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 24 December 2010

Originally posted by : ANKUR KUMAR
	Full amount of Rs. 51,200/- will be Disallowed for the Previous Year and will be added in the Computation of Income of the previous year as "disallowance Under Section 40A(3)" and thereby assessable to tax.

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 24 December 2010

Full ( Rs. 51200) amount will be disallowed as per section 40 A(3).

danish dabir (mumbai) (218 Points)
Replied 24 December 2010

full RS 51,200/- will be disallowed.....the limit of allowable cash expense is RS 20,000/- and if the amt of CASH PAYMENT exceed RS 20,000/- then whole amount will be dissallowed

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Vivek (P.C.C Student) (72 Points)
Replied 24 December 2010

if amount exceeds Rs.20000 entire amount is diallowed u/s 40A(3)

Dattatray (Account Executive) (51 Points)
Replied 24 December 2010

Hiii... Sudhanshu

Ya.. it is disallowed.. but you can do onething ask hotel to provide 5 to 6 bills.... if u have paid cash against 1 bill then it is completely disallowed.. better to ask for 5 to 6 bills...

I hope this will suffice u ??

Have a nice day !