Cash payment more than Rs. 10000/-

can a registered dealer purchase capital goods in cash valuing more than rs 10000/-
Replies (10)
As per income tax "No".
Under the existing provisions of the Act, revenue expenditure incurred in cash exceeding certain monetary threshold is not allowable as per sub-section (3) of section 40A of the Act except in specified circumstances as referred to in Rule 6DD of the Income-tax Rules, 1962. However, there is no provision to disallow the capital expenditure incurred in cash. 
@ Mr Shriti Goyal.,

Finally Here what you say...
It's allowed or not
Yes... or No...
According to the new provision, if an assessee makes a payment of any amount exceeding Rs. 10,000/- in cash to any person in a single day for any expenditure of revenue nature, then such sum shall not be allowed as deduction in computation of Income from “Profits and gains of business or profession”.

The allowable mode of payment above Rs. 10,000 are account payee cheque or account payee bank draft or payment through electronic clearing system through a bank account.

hope u get your answer with clarity..

depreciation on such excess cash will be restricted as per 43

43 (1) 

***

Provided further that where the assessee incurs any expenditure for acquisition of any asset or part thereof in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account, exceeds ten thousand rupees, such expenditure shall be ignored for the purposes of determination of actual cost.]

@ Mr Shriti Goyal., 

Brother...

Here Querist's want reply based on their queries with simply reply which is understandable. Not for provisions and Law and Act and etc etc...

The law's can't understand to all the persons. So, Better to reply simplest way with satisfied...

If anyone wants law, Act, Rules & provisions then better to answer with that...

So,
Please reply simple way...


GOOD LUCK...
Hello di,

without law and act, no query raised and solved , if you or any person don't know law and act , you and other people can go for service of Chartered accountants and other professional person.
your problem will be solved instantly
thanks
@ raja it's not your interest to tell someone how should they answer , it's their choice to answer in whatever they think to be right with act/rules
if you have answer you can put it in the way you wish.
hope you understand

Accumulated cash payment of more than Rs.10000/- in a day made in different revenue expenditure like stationery, staff welfare, office maintenance etc is allowable or not? (head wise below 10k)

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