Can cash payment made for Vehicle and Equipment insurance.

[Sanjoy Das]

Dear Sir,

Let us know whether vehicle insurance and equipment insurance made by cash. If it is disallowed , kindly let us know the IT U/s ?

Regards

Sanjoy Das

AI Summary

Cash payment restriction may render insurance premium deduction ineligible unless paid by account-payee cheque or bank draft.
Insurance premiums for vehicles and equipment are prima facie deductible as business expenditure, but a separate rule limits cash payments beyond a specified threshold and requires account-payee cheque or bank draft; cash payments exceeding that threshold may be disallowed unless conditions or exceptions are met.