TaxTMI 
TaxTMI 
Pl.tell us whether an incorporated company can freequently issue bearer cheques to its clients and employees and workers?What are restrictions on issuing bearer cheques as per company law and other laws inforce in our country?
Restriction of issue of Bearer Cheque
13 Nov 2011 
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Deduction denial for non-account-payee payments limits company use of bearer cheques for deductible expenses.
Section 40A of the Income Tax Act disallows deduction for expenditure paid otherwise than by an account-payee cheque or account-payee bank draft where payments to a person in a day exceed the statutory threshold; contributors concur that this creates a compliance constraint on companies issuing bearer cheques for deductible payments. (AI Summary)
Section 40A of the Income Tax Act disallows deduction for expenditure paid otherwise than by an account-payee cheque or account-payee bank draft where payments to a person in a day exceed the statutory threshold; contributors concur that this creates a compliance constraint on companies issuing bearer cheques for deductible payments. (AI Summary)