Menu
Cash Purchase
I have purchase goods in cash worth Rs. 25,000. Can I make a single cash payment of Rs. 25,000 for this one transaction ?
Replies (2)
As per Section 40A(3) of the income tax act, you cannot make cash payment exceeding Rs.10,000 per day to a single person. You should pay cash to him on 3 different days. Best way is to make payment via bank if you want to pay him on a single day.
If it is non-business goods purchase, it is ok. No issue. if it is business purchase then avoid cash purchase
Recent Topic
- Business income source for husband and wife
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
Related Topics
CAclubindia
