Sale of car

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This query is : Resolved

shamprasad dontul (Querist)

23 July 2017 dear sir/madam

a person received rs.80,000 on sale of his car in cash mode.will it be allowable in income tax act

Rahul varshney

Rahul varshney (Expert)

23 July 2017 Budget 2017 Update: In order to disincentivise cash transactions, it is proposed to amend the provisions of Section 40A of the Income Tax Act to provide the following:
1. To reduce the existing threshold of cash payments to a person from Rs. 25,000 to Rs. 10,000 in a single day i.e. any payment in cash above Rs. 10,000 to any person in a day shall not be allowed as deduction in computation of Income.
2. Deeming a payment as Profits and Gains of Business or Profession if the Expenditure is incurred in a particular year but the Cash Payment is made in any subsequent year of a sum exceeding Rs. 10,000 to a person in a single day.

shamprasad dontul

shamprasad dontul (Querist)

23 July 2017 Thank you Sir for the above clarification

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