cash recieving of more than 20000 in one day

the office at times recieves cash from customers in excess of 20000 against sales. How should we handle this situation as per IT rules.

dear friend

law has specified treatment of expenditute and payment not for receipts.u can receive any amont in cash and book this in books of a/c.

Originally posted by : tarun rustagi
	dear friend law has specified treatment of expenditute and payment not for receipts.u can receive any amont in cash and book this in books of a/c.

YES

There will be no tax liability on receipt of cash exceding rs.20000/-in  a same day.

There is a section in income tax act which deals with this case. U/s 269SS & u/s 269T receipt in excess of Rs. 20,000/- not allowed in cash otherwise than an account payee cheque or account payee bank draft.

For details follow this link

http://www.taxguru.in/income-tax/provisions-of-section-269ss-and-269t-under-income-tax-act.html

Dear All

Sec 269SS & T is only for loan or advance taken or payment(Balance Sheet item). So if the assessee has taken or has given any loan then he is not allowed to pay Rs20000/- in cash or receive the same.

for P/L items, In no way Rs. 20000/- can be paid in cash in one day to one party but there is no limit for any receipts, as the problem then lies with the giver and not taker.So still if the assessee wants to deal then he can simply break the amounts in Rs.20000/- or less in one voucher in one date.

hi

i agree with dipesh. section 269SS & T does not attract for the receipt for narmal sale of goods or services. it is only applicale for the loan accepted or given in cash. t

hw witty.....question......

the rule of 20000 cash is for payment only . you can made cash sale in excess of rs. 20000 also