Cash receipt

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Guest

Guest (Querist)

14 March 2014 can i take receipt of more than rs. 20000 on the sale of good..!

Nikhil Kaushik

Nikhil Kaushik (Expert)

14 March 2014 Dear Akash,

you can receive amount in cash for sale of goods. you dont have to worry about that at all as long as it is properly accounted for and reflected in the books of accounts.

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

14 March 2014 Section 40A(3) not applicable for the receipts it applicable for the payments only.

So receiving of more than Rs.20000 cash in a single day is not problem to you but it may be problem to the buyer(paying assessee)

OM SAI SRI SAI JAI JAI SAI

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Guest

Guest (Querist)

14 March 2014 ty..and if i m paying assessee than what can be problems & how it violats the act..!

Nikhil Kaushik

Nikhil Kaushik (Expert)

14 March 2014 if you are paying, then any payment, to any vendor for any expense, in excess of Rs 20000 in a day shall be disallowed

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

14 March 2014 If you are payer; in such case if you paid more than Rs.20000 cash in a single day for the purpose of expenses debited to Trading and P&L Account either at the time of making payment or for earlier debited items then such payment shall be disallow u/s 40A(3) and doesn't allowed as expenditure for the purpose of Income tax for computation of taxable income. However there is some exemption to this section for the payments specified in Rule 6DD of the income tax rules. To know about such exemptions specified in Rule 6DD please click on the below link.

https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2001ITAct/rules2001/rules006dd.htm

OM SAI SRI SAI JAI JAI SAI

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