cash receipts

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shubha (Querist)

27 June 2008 hi,
i wanted to know if in a real estate company (private company) can they receive any amount in cash towards sale of land...? is there any notification or circular for the same..

Amit Bajaj

Amit Bajaj (Expert)

27 June 2008 They can receive money in cash upto Rs 20,000 per day, however even more than that subject to conditions mentioned under Rule 6DD of income tax act

Shekar

Shekar (Expert)

27 June 2008 Hi..

Section 40(A)(3) of the Act lays down ceiling of Rs 20,000 on cash transaction.Any expenditure exceeding Rs 20,000 will suffer disallowance if such payment is made otherwise than by an account-payee cheque or bank draft.

U may note that this provision applies only for PAYMENTS & NOT FOR RECIEPTS unlike what Amit said..

shubha

shubha (Querist)

27 June 2008 so the limit of 20000/- applies to both receipts and payments right? and what abt cash recipts which goes to lacs of rupees... is it permissible to accept so much in cash?

Shekar

Shekar (Expert)

27 June 2008 NO...there is no limit on cash reciept..

provision applies only for PAYMENTS , NOT FOR RECIEPTS

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