Can cash payment made for Vehicle and Equipment insurance.

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..... Can cash payment made for Vehicle and Equipment insurance.
Query (Issue) Started By: - Sanjoy Das Dated:- 22-4-2015 Last Reply Date:- 30-4-2015 Income Tax
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Income Tax
Dear Sir, .....

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..... 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 Reply By MAHENDRA SURANA: The Reply: Mr. San .....

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..... joy Das Insurance premium is covered u/s 36(1)(i) of Income tax , 1961. Which silent about cheque or cash payment . But Section 40A(3) of Income tax Act,1961 restrict to Rs, 20,000/- in cash if more .....

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..... than that it should be paid by A/c payee cheque or Bank Draft subject to some condition.Otherwise it may disallowed as per the provision of Sec 40A(3)
Discussion Forum - Knowledge Sharing .....

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