Section 40 a (3) and section 269st

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shital (Querist)

15 December 2017 MY query is that in section 40A(3) it limits cash payment rs 10000 if exceeds it w be disallowed but in section 269ST
IT allow receipt cash less than rs 200000 how it can operational if payer is not allowed to pay cash exceeding 10000
I can't understand please help me out.

Suppose if trader who purchases goods from dealer say rs 150000 and dealer want him to pay in cash because he is allowed to receive the cash less than 200000 u/s 269ST In such situation can such payment be disallowed in hands of trader.(trader is not subject to TAX AUDIT).

ALSO one more doubt is section 40A(3) applicable to all asseesee or only tax audit asseesee.
please reply me .

thanks in advance.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

15 December 2017 1. If trader pays 1.50.000 in cash towards purchase of goods, 40A(3) attracts.
Dealer will not come under 269ST.

2. 40A(3) is applicable to all assesses irrespective of their accounts are audited
or not.

RAJA P M

RAJA P M (Expert)

15 December 2017 Yes... I agreed to Mr B Chackrapani warrier Sir... @ Mr. Shital., The section 40A(3) is applicable both end... In case the buyer ll give 1.5 Lakhs cash then he ll face the section. But, it's not atract to Seller (Cash Receiver). In case the buyer is one of the trader then he ll restrict himself without exceeding 10k. Bcoz, it's their own risk...

RAJA P M

RAJA P M (Expert)

15 December 2017 Simply said., Above 10k cash ll be given by Consumers then he ll be feel free not atract the above said section... Otherwise no make money above 10k...

shital

shital (Querist)

18 December 2017 THANK YOU SO MUCH FOR THE REPLY.

But I have doubt then what is use of section 269ST why it is inserted??? it is only useful for purchase for non traded godds & services
please help me out.

RAJA P M

RAJA P M (Expert)

18 December 2017 https://taxguru.in/income-tax/acceptance-repayment-loan-cash-section-269ss-269t.html

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