Expenses related
This query is : Resolved
29 June 2025
If purchased from unregistered dealer, purchase expenses are allowed in income tax?
29 June 2025
Yes, allowed. (from GST unregistered)
29 June 2025
What is cash purchase of goods and services limit in business per day in income tax act?
30 June 2025
Rs. 10,000/- per person per day.
30 June 2025
What about less than 2 lac for cash payment per day allowed? Can we purchase goods in cash 150000 per day?
30 June 2025
Cash Payments for Business Expenses (Section 40A(3)) IT act:
Limit: A business cannot claim a tax deduction for any expense exceeding INR 10,000 made in cash to a single person in a single day.
Exception: This limit is increased to INR 35,000 for cash payments made to transporters for hiring, leasing, or plying goods vehicles.
Implication: If you make a cash payment above these limits, the entire expense will be disallowed as a deduction, increasing your taxable income.
Limit: A business cannot claim a tax deduction for any expense exceeding INR 10,000 made in cash to a single person in a single day.
Exception: This limit is increased to INR 35,000 for cash payments made to transporters for hiring, leasing, or plying goods vehicles.
Implication: If you make a cash payment above these limits, the entire expense will be disallowed as a deduction, increasing your taxable income.
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