If company or firm required to tax audit can make payment to PGVCL BILL IN CASH FOR MORE THE RS. 20000/- ??
0
0
Answer Now
Comment
Report
2
Answers
Regarding you query on cash payment to PGVCL I would like to convince that As per provision of Section 40A (3)(a) of the Income-tax Act, 1961any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000 /- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction from your income. So the net effect will be your income will be higher and you need to pay higher tax.
Important Note โ Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures โ online & in Pen Drive/ DVD โ at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below โ
For any questions Request A Call Back
Hi Friend,
Regarding you query on cash payment to PGVCL I would like to convince that As per provision of Section 40A (3)(a) of the Income-tax Act, 1961any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000 /- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction from your income. So the net effect will be your income will be higher and you need to pay higher tax.
You may also note that provision of tax audit will not make any difference on the allowabilty and disallowability of the expense made in cash.