Cash Payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2011 If I've purchased a furniture of more than Rs.20000 & have to make a payment; which mode should be preferred? Check or cash?

What if it is made in cash? Will it be added to profit in current year even if I've paid tax on the amount already as a part of income in previous year?

U S Sharma

U S Sharma (Expert)
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15 May 2011 dont get disturbed on such minor issues, your payment is allowed, as its not an expense, but purchase of capital goods, so your transaction is valid.

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