Cash transactions allowed

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This discussion clarifies the rules around cash transactions for jewellery and pawnbroking businesses. While Section 44AD allows for cash payments up to Rs. 1 lakh to customers, Section 269T imposes a limit of Rs. 20,000 for loan repayments in cash. Therefore, paying Rs. 1 lakh in cash to a customer for a loan is permissible under 44AD, provided it doesn't violate the Rs. 20,000 limit per loan under 269T.

Kollipara Sundaraiah online

Kollipara Sundaraiah online

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22 July 2021 Sir,
Sec 44ad it returns filed jewellery business and pawn brokeing business person money (loan)paid to customer rs:1 lacs through on cash mode.
Question:
1.money pay to customer rs:1 lacs cash mode allowed and cash transactions limit in it act.