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Cash payment uptil 1,90,000 for old debtors

Tax queries 190 views 8 replies
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trainee
514 Points Posted on 06 March 2018

Dear Sir 

 

I have some trade payables in books opening balances as on 1.4.2017 being around 1,18,000 and 155000.

 

Can I clear these in cash from my books ? 

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On 06 March 2018 at 18:11 Report
Replies (8)
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student
600 Points Posted on 06 March 2018
yes u can

limit is for above 2 lakhs in cash
2 Reply
On 06 March 2018 at 18:29
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543 Points Posted on 06 March 2018
how can we pay more than 10000 in cash in day

as per section 40A(3) any payment More than 10000 in single day is not allowed
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On 06 March 2018 at 20:00
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student
600 Points Posted on 06 March 2018
it's for revenue expenditure
2 Reply
On 06 March 2018 at 20:54
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543 Points Posted on 06 March 2018
There is no exception to Revenue expenditures
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On 06 March 2018 at 20:59
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Ur friend
1533 Points Posted on 06 March 2018
Don't make cash payment for trade payables. If you will do so, provisions of section 40A(3A) comes into play in the year of payment and entire cash payment will be deemed business Income ov that Year.
15 Reply
On 06 March 2018 at 21:06
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student
600 Points Posted on 06 March 2018
agreed
2 Reply
On 06 March 2018 at 21:17
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trainee
514 Points Posted on 07 March 2018

Can I pay 1,18,000 in monthly 12 installments of 10,000 each ?

1 Reply
On 07 March 2018 at 16:36
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543 Points Posted on 07 March 2018
Yes , you can
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On 07 March 2018 at 17:12


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