What if payment is made above 20k in Cash ?

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What if payment is made above 20k in Cash ?

The governing section is 40A(3) of the Income Tax Act, 1961 but I want to know how will you explain this to a lay man ? Please ellaborate on this ?

2007-01-01 23:00:19 · 2 answers · asked by shrruti v pillai 1 in Business & Finance ➔ Taxes ➔ India

2 answers

If any body who is a tax payer and make payments beyond Rs. 20K in cash for the revenue expenditure. The payments made so will not be allowed in your expenditure and you will have to pay the tax on the expenditure incurred so. Even in case when there is no tax liable by you as per your profit or loss account or computation of income.

2007-01-04 01:09:10 · answer #1 · answered by YASHPAL T 1 · 0⤊ 0⤋

No problems.

2007-01-02 02:05:47 · answer #2 · answered by Meeto 7 · 0⤊ 0⤋