Respected experts
I am a tax payer . I run a coaching . But i dont deposit my money in my bank account .
Now my question is ...
1) Is it really necessary to deposit or keep money in bank , if i am a tax payer ?
2) I purchased 20 chairs in cash . I payed 40000 cash . since i dont use my bank account to make an transaction , will it make any issue ?
Somebody told me , i want to pay someone above 20000 , i should use bank account . is it really necessary ?
na there is no need to deposit cash in bank if u r not interested
but now if u wil pay more than 20000 for single expense to single party , youcant claim that expenses while finalising ur income...
but its advised why to maintain high cash in hand. have a bank account dear
if u still dont want to maintain bank A/c fine, then account the payments in three or four installments i mean to say account the payments have been made three different days
ok sir . thank you very much .
Sir , if i pay in cash to some one and i buy some goods from that person to sell that goods to make an profit and for that i pay 2 lacs in cash , will be allowed ?
nopes it wil not b allowed dear.... u cant have purchases in cash.. so i wil suggest either have ten bills of below 20000 or pay in cheques
You are carrying on a business and filing ITR-4. You will be required to maintain books of accounts. And running coaching classes is not cash intensive business. So use bank also for making large payments.
if you pay above rs.20000/- is applicable for if you have a tax audit of incometax
if you not liable for tax audit than this is not applicable
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