Rent and security deposit paid in cash

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Query Ask a Query

Gauri S Jaipal

Gauri S Jaipal (Querist)

29 June 2016 Can we pay rent and security deposit in cash. Security deposit is Rs 40,000 and Rent is Rs. 10,000 pm?

Rupesh Jain

Rupesh Jain (Expert)

29 June 2016 you can make below Rs. 20000/- in a day to a person. if you doing business then this exp. will not allowed you are paying Rs. 10000/- PM rent then no problem.

Message likes : 1 times

Saket Jain

Saket Jain (Expert)

29 June 2016 the person receiving deposit in cash will be liable under 269SS. You can pay deposit and rent in cash provided rent payment does not exceed 20000/- if you are using premises for business purpose and claiming expenses. If you use premise for residential purpose then no such limit for rent paid.

Message likes : 1 times

Gauri S Jaipal

Gauri S Jaipal (Querist)

29 June 2016 Thanks
Tenant is Pvt ltd co. So in case of security deposit in cash rs 40,000 any issue regardng income tax and company Act

Gauri S Jaipal

Gauri S Jaipal (Querist)

29 June 2016 Landlord is individual

Saket Jain

Saket Jain (Expert)

30 June 2016 Landlord is receiving deposit thus he may be liable. In companies act there is no restriction.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now