Related to cash payment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 June 2016
Can we make cash payment for car purchasing as per new rules.
CA Sumit Shah
(Expert)
01 June 2016
as per ammendment in income tax act applicable from 1st june, 2016,
if a person pays even a single rupee in cash for bill exceeding Rs. 2 Lakhs, then the reciever of such money shall deduct TCS in entire bill amount.
Same way ammendment has also came up regarding purchase of car exceeding Rs. 10 Lakhs,
in these ammendment, there is compulsory deduction of TCS for cars valuing more than Rs. 10 Lakhs.
Now coming to your query,
if you purchase car for amount exceeding Rs. 10 Lakhs, dealer will deduct TCS.
but if your car is below Rs. 10 Lakh and if you pay even Rs. 100 in cash for purchase of that car, then your case will come under the 1st point i.e. TCS will be deducted on entire value by the dealer as the normal value of a car exceeds Rs. 2 Lakhs
if a person pays even a single rupee in cash for bill exceeding Rs. 2 Lakhs, then the reciever of such money shall deduct TCS in entire bill amount.
Same way ammendment has also came up regarding purchase of car exceeding Rs. 10 Lakhs,
in these ammendment, there is compulsory deduction of TCS for cars valuing more than Rs. 10 Lakhs.
Now coming to your query,
if you purchase car for amount exceeding Rs. 10 Lakhs, dealer will deduct TCS.
but if your car is below Rs. 10 Lakh and if you pay even Rs. 100 in cash for purchase of that car, then your case will come under the 1st point i.e. TCS will be deducted on entire value by the dealer as the normal value of a car exceeds Rs. 2 Lakhs
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