TaxTMI 
TaxTMI 
Is examination fee paid by a college through an office staff of the college attracts 40A ? Please answer. This amount can only be paid through SBI Account.
Examination fee paid by college in excess of Rs - 10000 through account of another person
24 Sep 2025 
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Tax disallowance for cash payments made through staff accounts may apply, with narrow exception for government payments under prescribed rules.
A college paid university examination fees through an office staff member's bank account and reimbursed that staff member in cash. Such cash reimbursement ordinarily attracts a tax disallowance for payments not made by prescribed modes, but a possible exception may apply if the university is treated as Government and the payment falls within rules that permit legal tender payments to government bodies. (AI Summary)
A college paid university examination fees through an office staff member's bank account and reimbursed that staff member in cash. Such cash reimbursement ordinarily attracts a tax disallowance for payments not made by prescribed modes, but a possible exception may apply if the university is treated as Government and the payment falls within rules that permit legal tender payments to government bodies. (AI Summary)