TaxTMI 
TaxTMI 
Examination fee paid by college in excess of Rs - 10000 through account of another person
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....xamination fee paid by college in excess of Rs - 10000 through account of another person<br> Query (Issue) Started By: - SUBAIR MADAKKAL Dated:- 24-9-2025 Last Reply Date:- 12-11-2025 Income Tax<br>Got 3 Replies<br>Income Tax<br>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. Reply By Padma....
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....nathan KV: The Reply: Can you elaborate the query? who is claiming deduction of payment? what is the mode of payment? why is it being paid through office staff and how was it paid to office staff? Reply By SUBAIR MADAKKAL: The Reply: Dear Sir Assessee is the self-finance college affiliated to University of Calicut. They can only pay the examination fee from State Bank of India. While making th....
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....e payment, they have paid the examination fee from their office staff account instead of making from their own account due to some technical issues. For the said examination fee payment they have paid cash in return to the office staff. Hence, the college can account the payment only through cash account. This is my question. This cash payment will attract the disallowance u/s 40A ? Reply By Padm....
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....anathan KV: The Reply: Sir, Strictly speaking it will attract Section 40A. However, if the University of Calicut can be considered falling within the wider meaning of "Government", it may be possible to shelter under Rule 6DD Clause (b) where the payment is made to the Government and, Under the rules framed by it, such payment is required to be made in legal tender; <br> Discussion F....
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