16 June 2015
Section 40(a)(3) of Income tax provides that any expenditure incurred by an assessee (whether individual, company, firm etc.) above Rs. 20000/- other than by account payee cheque or draft shall not be allowed as a deduction. This section covers those payments over Rs. 20000/- made by bearer cheque or cash. However, if the payments are made for hiring or leasing carriages for goods such as lorries, trucks etc then the limit is extended to Rs 35000/-.
16 June 2015
you can buy fixed assets in cash exceeds rs. 20000/-. but now you cannot but immovable property in cash exeeds rs. 20000/- psl see section 269SS.
05 February 2016
Rupesh Sir, Please advise what are the consequences if Rs. 2,50,000 accepted as cash and shown in sale deed. Thanking you in anticipation Ramesh
06 February 2016
Section 271D of Income Tax Act 1961 provides that if a loan or deposit is accepted in contravention of the provisions of section 269SS then a penalty equivalent to the amount of such loan or deposit may be levied by the Joint commissioner.
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