Ferrous scrap purchased for Rs 50000 cash payment is allocable
This query is : Resolved
11 March 2026
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12 March 2026
Paying ₹50,000 in cash for ferrous scrap violates the ₹10,000 daily limit under Section 40A(3) of the Income Tax Act. Consequently, you will lose the entire ₹50,000 as a deductible business expense, effectively increasing your taxable profit by that same amount.
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