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Sec 40 a (3)

ashwin (student) (29 Points)

16 February 2012

According to Sec 40 a (3) cash payment cannot exceed 20,000 /- BUT IF

Suppose if there is public holiday ( means in banking sector ) then

Can I make payment above 20,000 /- Rs in cash in such day........if YES then why?

CWA Students most welcome

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8 Replies

RAKESH (Almost CA) (2199 Points)
Replied 16 February 2012

yes the payment can be made in cash. but condition is that the public holiday is out of unexpected reasons then it is allowed. if u knew that it is public holiday and knowingly u r making the payment on that day then it is not allowed.

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CMA Ramesh Krishnan (Cost & Management Accountant) (71604 Points)
Replied 16 February 2012

Yes. as per rule 6DD, where the payment was required to be made on a day on which the banks were closed either on account of holiday or strike, then section.40A(3) not apply

Tony John (Chartered Accountant) (6085 Points)
Replied 17 February 2012

Originally posted by : RAKESH
	yes the payment can be made in cash. but condition is that the public holiday is out of unexpected reasons then it is allowed. if u knew that it is public holiday and knowingly u r making the payment on that day then it is not allowed.