Cash purchase - 2 lakhs

Apart from a wrong method but so many people moving on with this system .

Originally posted by : NARENDRA
	Apart from a wrong method but so many people moving on with this system .

Yes, So many people follow the way.

But, As per rule Cash Expenses not allowed 10k. The said rule wrongly understand by people and cash payment made 10k and multiple times in a bill...

Rule is cash expenses not exceeding above 10k and Cash payment also...

The Income Tax Act's Section 40A(3) addresses the maximum amount of cash that can be exchanged in a transaction. According to Section 40A(3), the Tax Act of India will disallow any expenditure over ₹10,000 that is paid for in cash.

So they can pay in installments plus their working capital Will be healthy