Income tax

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This query is : Resolved

KISHAN RATHOUR (Querist)

27 October 2012 WE ARE CONTRACTING PARTNERSHIP FIRM. PLEASE ADVISE MAXIMUM PERMISSIBLE LIMIT OF SINGLE CASH PAYMENT FOR FY 2011-12 AND 2012-13. IS IT 20000/- FOR BOTH THE PERIOD.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 October 2012 The limit of single cash payment below Rs. 20000/- is applicable only in the case of payment against any expenditure for both the F Ys.
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For amount receivable and payable to partners-there is no such limit.
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You can't repay loans taken by your firm exceeding Rs. 20000/- in cash.
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V K Bajaj

V K Bajaj (Expert)

28 October 2012 Apart from above (as detailed by Mr Bafna) you can pay any amount in cash to Govt of any nature.

Cash exceeding Rs. 20000 can also be paid by Cash for business expenses or purchases but then you require to justify strongly that payment of cash was the only alternative.

But it is suggested to pay or receive through banking channels.

contact@vkbajaj.co.in

Prakash Kochar

Prakash Kochar (Expert)

28 October 2012 Payment or aggregate payments exceeding Rs. 20000/- IN A DAY otherwise than a/c. payee cheque or draft, except the circumstances prescribed under substituted rule 6D Dis disallowable u/s. 40A(3).

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