If we deducting tds on bills raised by parties than we can pay above Rs. 20000/- in cash to party in one day or not.
Or cash payment is restrcted to RS. 20000 a day.
3 Replies
Balaji
(Articled assistant & CA final)
(117 Points)
Replied 13 March 2012
As per Section 40A(3), if a single payment exceeds Rs.20000 to a single party on single day, then it is chargeable to Tax irrespective of whether TDS deducted or not...
Sonam Bidasaria
(CA)
(770 Points)
Replied 14 March 2012
Only one addition, i want to made. In case of payment made to contractors for plying, hiring and leasing the goods carriages, the thershold limit is Rs. 35,000.
deepak
(Chartered Accountant Company Secretary)
(94 Points)
Replied 17 March 2012
Cash payment of expense and TDS on Expenses paid are two separate things governed by two separate section of income tax
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