Cash Advance paid on 1.4.2018 ₹7,000/- thereafter Exp. bill for ₹11,000/- received on 2.4.2018
and balance amount paid ₹4,000/- by cash. Whether this is allowable exp. as per INCOME TAX ACT.
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Cash Payment
Replies (6)
Yes it is allowed
but total payment exceeds RS. 10,000/-
Rs 10000 limit is applicable for per day
bill amount or exp. also more than ₹10,000/-
please refer sec 32 income tax where in business exp cash limit is 10000 and section 40(A)(3A) cash payment limit RS 10,000.
and newly inserted section 269ST: person who enter into transaction of RS 2 lac or above in cash will be liable to payby way of penalty the amount of txn
and newly inserted section 269ST: person who enter into transaction of RS 2 lac or above in cash will be liable to payby way of penalty the amount of txn
it is disallowed as bill amount for a day exceeds ₹10,000/-
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