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Cash sale exceeding rs 20000

vishal kapoor (a) (66 Points)

29 March 2011

Hi,

I want to know whether cash sale exceeding20000 amounts to voilation of income tax act.

thanks

vishal

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10 Replies

CA ANUPAMA (CMA, CA ) (149 Points)
Replied 29 March 2011

Now the limit of Cash payment per day has been extented to 30,000 from 20,000.

Vinit (CA Final ) (188 Points)
Replied 29 March 2011

No the problem is not with the sale exceeding Rs.20000/- in cash rather it is for Purchase or Revenue expenditure.

CA Saiyum khan (Practicing CA) (685 Points)
Replied 29 March 2011

There is no limit for cash sales. However it is advisable to keep the information of customers to whom cash memo exceeding Rs.50,000 is raised.

1 Like

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 29 March 2011

Originally posted by : M. ANUPAMA
	Now the limit of Cash payment per day has been extented to 30,000 from 20,000.

That limit is extended only for goods carriage and to Rs 35,000/- rest it is Rs 20,000/- only..

Siyaram Kumar (CA FINAL/ Jr. Superintendent(Accounts) IIT BHU VARANASI) (97 Points)
Replied 29 March 2011

Cash sales is not a matter of serious concern under income tax act 1961, although proper invoicing are required to record such cash sales in books.

Section 40 A( 3) of income tax Act 1961 deals with only cash payment against expenditure exceeding Rs. 20,000/- or 30,000/- as the case may be.

Antony Jayakumar (Article Student) (26 Points)
Replied 29 March 2011

I agree to Mr.Siay 's clarification

Madhusudan Kabra (knowledge seeker) (1779 Points)
Replied 30 March 2011

Originally posted by : siya.
	Cash sales is not a matter of serious concern under income tax act 1961, although proper invoicing are required to record such cash sales in books. Section 40 A( 3) of income tax Act 1961 deals with only cash payment against expenditure exceeding Rs. 20,000/- or 30,000/- as the case may be.

Agreed

CA Chintan Vyas (Chartered Accountant) (116 Points)
Replied 30 March 2011

There is no such limit in receiving of cash by cash sales rather there is limit on cash payment.

Anshul Mittal (Freelancing) (741 Points)
Replied 19 April 2012

The maximum allowable payment of cash in a single day as per the sec. 40A(3) of Income Tax act, 1961 is 20000 and 35000 (in case of tranport co.).

Tushar Tulsian (124 Points)
Replied 06 April 2017

sir

In continuation of above please suggets, can we do cash sales, simply write cash sales on bill under gst if bill amount is rs 40000 to rs 45000 or we have to give name of the purchasers.