Limit of accepting cash against advance booking of property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2012 Hello Sir,

I am CA Final student, and the question is
what is the limit for accepting cash against advance for booking flats, plots in construction business? Whether sec.40A(3) provision is applicable for this transaction?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 February 2012 As the purchaser is paying cash against booking of a flat, he can pay the amount in cash, exceeding Rs 20000/-.

As the same is not being purchased for any business purpose, 40A(3) would not apply.

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