Cash purchase more than 20000/-

No, you cant purchase from cash which is more than Rs.20,000/- as per IT Act,bcz same transactions are disallowed as expense while calculating the tax laiability

Cash expenditures (including purchases) made above Rs.20,000/- will be disallowed u/s 40A(3) of IT Act. However, there are certain exemptions like if u purchase of agricultural produce, fish products etc. 

But in general, the above disallowance applies to all.

If u do cash payment to different persons, each less than rs.20,000/-, it is okay.

k nice Sir,broadly i had rpld to that quiry..

ofcourse madhu, you are correct. i didnt say u are wrong... i just added few lines... :)

no you cannot