RTGS

it will not be disallowed as the same is APPROVED by bank.

Dear Friend,

Will it ( R.T.G.S)  be disallowed u/s 40A3 since it s not a bank draft or a cheque? 

Answer to this question is simple that it is  “ALLOWED” as it is equivalent to BANK TRANSACTION.

Explanation

Section 40A(3) of the Income Tax Act, encourages accountability through this.

Accountability is expected in every expenditure by an assessee, in respect of which payment in excess of Rs.20,000 is made otherwise than by an account payee cheque or an account payee bank draft.   Here Rule 6DD prescribed,  “the cases and circumstances in which payment in excess of Rs.20,000/- may be made otherwise than the way stated earlier”.  

Rule DD( c ) says “Payment through banking system”.   It is clear that  this exceptional circumstance is allowed.    In the course of technological developments, this RTGS and NEFT are evolved better facilitating fund transfer mechanism.

You need not go for any specific written evidence anywhere, even to that extent Budget, as the Income Tax Act itself is very clear enough in above words “Payment through banking system”.

Dear friend..

Wud u plz tel me wat is NEFT transaction?

Payment through RTGS is an allowable exp. only. All the points have been rightly quoted by Mr.Venkateshwara Rao.

An RTGS or an NEFT is a bank transaction and so the question of it being disallowed does not arise.

An NEFT (National Electronic Fund Transfer) is nothing but a transfer of Funds. It allows individuals/companies/firms to electronically transfer funds from any bank branch to any other bank branch all over the country.

Real Time Gross Settlement  (RTGS)is supposed to be the faster one as it is done in real time.

In RTGS, the beneficiary bank has to credit the the beneficiary's account within two hours of receiving the funds transfer message.

National Electronic Funds Transfer (NEFT) is done on net basis.

This means bank club transactions together and only the net amount is transfered. This settlement is done 6 times per day on weekdays and 3 times on Saturdays.

NEFT is slightly slower compared to RTGS.

However, RTGS is only for transactions above Rs 1 lac.

If your transaction is for less than Rs 1 lac, you have to use NEFT.

Originally posted by : Mukund
	Payment through RTGS is an allowable exp. only. All the points have been rightly quoted by Mr.Venkateshwara Rao.

 Agree with mukund payment through RTG & NEFT is an allowable expenses.

RTGS can not be done without a account payee cheque... cheque can be a Echeque or a normal paper cheque.. so this fulfills the condition...

there ar some more transfers inspite of RTGS or NEFT , if u have any information about this then must tell me

  thxxxx

 byeeeeeeeee