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Cash transaction limit

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(Querist)
23 July 2017 dear sir/madam

the retailer has made payments to suppliers rs.10000 per day in cash (30 days * 10,000)i.e 3 lacs in whole year.is it allowed in income tax act
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Rahul varshney

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Rahul varshney (Expert)
23 July 2017 Budget 2017 Update: In order to disincentivise cash transactions, it is proposed to amend the provisions of Section 40A of the Income Tax Act to provide the following:

1. To reduce the existing threshold of cash payments to a person from Rs. 25,000 to Rs. 10,000 in a single day i.e. any payment in cash above Rs. 10,000 to any person in a day shall not be allowed as deduction in computation of Income.

2. Deeming a payment as Profits and Gains of Business or Profession if the Expenditure is incurred in a particular year but the Cash Payment is made in any subsequent year of a sum exceeding Rs. 10,000 to a person in a single day.
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shamprasad dontul

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shamprasad dontul (Querist)
23 July 2017 dear sir,
please clarify that the above payments made is allowed or not in this particular case
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