Excess recd of payment more than 20000 in cash

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2012 payment of more than rs.20000 in cash is disallowed ... but can we shows in our books of account:- cash sales of rs.50000/75000 (1 bill) etc
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& reced cash ( against such sales )of rs.35000, 40000 (in 1 time)etc..

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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11 May 2012 Cash sales can be shown in the books of accounts and there are no problems in respect of such sales.

SANJAY

SANJAY (Expert)
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11 May 2012 As per sec 40(a)Cash payment made for expenses more than 20000/- is disallowed. This section does not includes the receipt of more than 20000/-. So all receipts are shown in books whether it is from cash or cheques.