Cash transaction limit
This query is : Resolved
shamprasad dontul
(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
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
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.
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.
shamprasad dontul
(Querist)
23 July 2017
dear sir,
please clarify that the above payments made is allowed or not in this particular case
please clarify that the above payments made is allowed or not in this particular case
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