Cash Transaction (limit rs. 20,000)
This query is : Resolved
yash chauhan
(Querist)
14 January 2010
Why cash transaction more than Rs. 20,000/- is disallow (or taxable) by I. Tax.?
is following allowable or disallowable?
1)Cash payment to creditor(supplier)more than Rs.20000 in a day in different cash voucher?
2)Cash sale more than Rs.20000?
3)cash purcahse more than Rs.20000?
can you Pls. explain in detail?
thank you.
is following allowable or disallowable?
1)Cash payment to creditor(supplier)more than Rs.20000 in a day in different cash voucher?
2)Cash sale more than Rs.20000?
3)cash purcahse more than Rs.20000?
can you Pls. explain in detail?
thank you.
Ram Avtar Singh
(Expert)
14 January 2010
if you are paying cash more than 20000/ in a day for sale or purchase of rawmaterial its come under Sec 40A(3)of income tax. in this rule its disallow.
Murtaza I Bhagat
(Expert)
14 January 2010
agree to disallowed if your payment goes over 20,000/- to any single party then you have to give your party a a/c payees cheque or draft.but no cash have to given in a day to any single payment more than 20,000/-
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