Cash receipts received rs:20,000/- allowed

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This discussion clarifies the Income Tax Act's restrictions on cash transactions, specifically the £20,000 limit for real estate dealings. For non-real estate businesses, such as retail rice traders, receiving cash amounts below this threshold from various sources like family gifts, increased cash sales, or multiple small loans (each under £20,000) is generally considered safe and permissible under the Act.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

27 December 2020 A business assess purchases of site value Rs:22 lacs as on date:20-12-2020.but cash balance Rs:15 lacs as on date:20-12-2020 in books.
Question:
Assess Rs:7 lacs difference amount adjustment options mentioned below.
1.cash loan from Rs:20,000/- *35 members received allowed it act.
2.cash advance from 1 lacs *7 members different customers.
Above options cash received correct methods

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

28 December 2020 The income tax act restricts accepting/payment of cash in excess of Rs. 20,000 in a real estate transaction. So, you cannot pay/accept cash consideration on sale of property.

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Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

28 December 2020 Sir,
a person not a real estate business (retail rice traders )
1.cash gifts from relative and family members
2.cash sales increase
3.cash received from different assess loans each one 19,000*30 members
above options cash increased safe and allowed in i.t.act