Cash payment restrictions under revised section 40A: disallowance and deeming for non-cheque payments exceeding statutory threshold affecting tax deductibility. Amends section 40A to disallow deduction where payments to a person in a day, otherwise than by account payee cheque or bank draft, exceed a specified monetary threshold, and further deems subsequent-year non-cheque payments made in discharge of previously allowed liabilities to be business or professional income chargeable to tax; prescribed exceptions may be provided based on banking facilities and business expediency.
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Provisions expressly mentioned in the judgment/order text.
Cash payment restrictions under revised section 40A: disallowance and deeming for non-cheque payments exceeding statutory threshold affecting tax deductibility.
Amends section 40A to disallow deduction where payments to a person in a day, otherwise than by account payee cheque or bank draft, exceed a specified monetary threshold, and further deems subsequent-year non-cheque payments made in discharge of previously allowed liabilities to be business or professional income chargeable to tax; prescribed exceptions may be provided based on banking facilities and business expediency.
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